Argus downgraded The Campbell's Company (NASDAQ:CPB) from Buy to Hold, citing persistent volume declines and margin pressures despite easing price hikes.

During the peak of inflation, Campbell aggressively raised prices, which took a toll on unit sales. While pricing actions have recently slowed, volume recovery remains elusive, with six of the past eight quarters showing flat or negative year-over-year trends. Consumers, strained by prolonged inflation and economic uncertainty, are increasingly opting for lower-cost private-label alternatives.

Campbell has also struggled to manage rising input costs, further weighing on margins amid softer volumes. Despite these challenges, Argus remains positive on the company’s recent Sovos acquisition, which includes the premium Rao’s brand—a move that could enhance the performance of the Meals & Beverages segment over time.

Still, given the lack of near-term volume momentum and profitability headwinds, Argus sees limited upside at current levels and has moved to the sidelines with a Hold rating.