11:13 AM EDT, 08/27/2024 (MT Newswires) -- Brown-Forman's (BF.B) "hangover continues" amid US headwinds and "muted performance" in key brands, RBC Capital Markets said Tuesday in a report.

"We see near term pressures continuing to weigh on numbers despite easier compares ahead," partly on slowing consumption outside the US, RBC said. Brown-Forman will announce fiscal Q1 results on Thursday.

The company's risk to reward profile is negative, the report said. "We are still a quarter or two away from better category visibility" and Brown-Forman's relative improvement in the spirits sector, RBC said.

Brown-Forman "is a heavily shorted name given category dynamics and the company would have to put up a materially better quarter with positive category commentary (which we are not expecting) for that narrative to change," RBC said.

RBC reiterated its sector perform rating on Brown-Forman's stock and kept the price target at $49.

Price: 44.74, Change: -0.65, Percent Change: -1.45