Deutsche Bank analysts provided their outlook on Campbell Soup Company (NYSE:CPB) ahead of upcoming Q3/22 earnings, expected to be reported on June 8.

Although nominal dollar-based consumption remains solid, the analysts mentioned that the company's market share performance continues to be affected by supply chain constraints and early signs of consumer trade down in categories like soup and crackers.

Furthermore, the analysts noted that consistent with the broader CPG space, the path toward margin recovery is still unclear. Consequently, while the analysts continue to expect more reinvestment than consensus, they acknowledge that the company will likely have less flexibility to spend on incremental A&P, which could hamper EPS and/or adversely affect top-line momentum and brand equity moving forward.