11:58 AM EST, 03/05/2024 (MT Newswires) -- Campbell Soup ( CPB ) is facing "ongoing pessimism" as its pricing ability fades and volume recovery becomes challenging amid declining consumer budgets, RBC Capital Markets said in a Tuesday note.

"Channel feedback has been largely negative lately, indicating that the salty snacks category continues to slow and CPB's soup business faces pressure from trade down to private label and value offerings," the investment firm said. The company's soup business still showed a "notable uptick" in January, possibly due to heavy rains and cold weather during the month, RBC added.

Campbell Soup ( CPB ) is set to release its fiscal Q2 results on Wednesday and RBC said it expects the quarter's results to be "mostly in-line," with a potential topline benefit related to the January performance of its soup business. However, the investment firm noted that it is "cautious" over the company's back-half weighted guidance, which is also below the long-term algorithm.

RBC has a sector perform rating on Campbell Soup ( CPB ), with a $47 price target.

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