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Campbell's margins worsen, dividend cut likely within 18 months, sell rating maintained

Analyst Insights
20 Jun 2026
Seeking Alpha
View Source
Bearish
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Campbell's Company reported Q3 2026 results that met sales expectations and slightly beat earnings by $0.02, but its gross and operating margins continue to deteriorate and show signs of accelerating decline. Structural inefficiencies in fixed asset usage are worse than most peers, indicating ongoing operational challenges. Financial leverage is increasing, and while dividend coverage is still adequate, it is weakening, making a dividend cut probable within the next 12 to 18 months. The analyst maintains a sell recommendation with an 18-month price target of $16 due to these persistent issues.

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