03:08 PM EDT, 06/03/2025 (MT Newswires) -- Campbell's (CPB) quarterly results were "better than feared," but many came out with the view that the path forward remains uncertain, UBS said in a note emailed Tuesday.

The consumer packaged food company on Monday reported fiscal Q3 adjusted EPS of $0.73 on revenue of $2.48 billion, ahead of the FactSet consensus of $0.65 on sales of $2.43 billion.

The company maintained its full-year adjusted earnings outlook of $2.95 to $3.05 a share but cautioned it expected earnings to come in at the low end of the guidance due to a slower-than-projected recovery in its snacks business.

Despite the beat, the company's shares only marginally outperformed XLP, the consumer staples ETF, reflecting the view the future was unclear, UBS said.

According to the firm, fiscal 2026 is shaping up to be "another challenging year" given the continued pressure in the snacks category, higher investments in both marketing and employee incentives, and uncertainty on tariffs.

"There are many moving pieces, but we struggle to see a path to EPS growth in FY26 at this stage," UBS wrote.

The firm said Campbell's shares appeared attractive relative to packaged food peers, but valuation alone had not proven to be a "meaningful positive catalyst."

"As such, we think shares will remain under pressure until there is greater visibility that [Campbell's] fundamental trajectory is on a better path," UBS said.

The firm reiterated its sell rating on the stock and changed its price target to $33 from $36 previously.

Price: 34.32, Change: +0.07, Percent Change: +0.20