02:44 PM EDT, 07/24/2024 (MT Newswires) -- Newell Brands' ( NWL ) outdoor & recreation segment will likely remain a "weak point" in Q2, as well as the rest of the year, as 2024 ordering is largely complete, RBC Capital Markets said in an earnings preview emailed Wednesday.

The business segment is unlikely to see any real improvement until 2025, limiting the upside on the company's stock, according to the note.

"It remains difficult to get constructive on the stock until we see evidence of abating headwind," RBC said.

RBC also said that despite continued pressure in the company's categories, Newell had a low bar to meet for Q2. The investment firm said it expects the company to post earnings of $0.21 per share on net sales of $2.03 billion.

Any potential outperformance in Q2 and beyond will likely come from Newell's learning & development or home & commercial solutions, RBC said.

RBC has a sector perform rating on the company's stock with a price target of $7.50.

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