01:55 PM EDT, 05/30/2024 (MT Newswires) -- Campbell Soup ( CPB ) faced continued pressure in snacks segment that could weigh on its fiscal Q3 earnings, RBC Capital Markets said Thursday in a note.

"Last quarter, management indicated that the category is recovering more slowly than anticipated and that it is tracking toward the low end of fiscal 2024 guidance as a result," the firm said.

RBC continued to witness in its channel work signs of weakness in Campbell Soup's ( CPB ) snacks category, which "suggests that some recent power brand innovations have been struggling to provide the expected lift."

While the brokerage sees upside for the company from its acquisition of Sovos Brands, but that is for the long-term. In the near-term, as in fiscal 2024, RBC is still cautious about Campbell Soup ( CPB ) given the softness in snacks department.

The firm has a sector perform rating and a $47 price target on Campbell Soup ( CPB ), which is set to release fiscal Q3 results on June 5.

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