11:47 AM EDT, 10/29/2025 (MT Newswires) -- Newell Brands ( NWL ) could post a lower-than-expected top line in Q3 due to a choppy demand environment amid tariff-driven higher costs, RBC Capital Markets said in a Tuesday note.

The company is due to post Q3 results on Oct. 31.

Scanner trends suggest a slump in Q3 volumes across key categories. Although Newell plans to offset tariff impacts, the brokerage said it is maintaining caution because the company is opting for additional pricing measures that could affect consumer elasticities.

Core sales growth is expected to grow sequentially in H2, driven by the company's distribution initiatives, innovation, and marketing plans, according to the note.

Despite better-than-expected gross margins in Q2, operating margin expansion was muted on higher overheads. RBC stated that it expects a substantial remaining expansion runway due to the company's improvement initiatives.

The brokerage said it reiterated its sector perform rating on the stock and a price target of $8 per share.

Price: 4.97, Change: -0.03, Percent Change: -0.60