07:56 AM EDT, 10/04/2024 (MT Newswires) -- PepsiCo's ( PEP ) organic sales could face "modest pressure" given slow domestic trends, though the company's fiscal Q3 results are likely to be consistent with earlier quarters, RBC Capital Markets said in a Friday note.

The company is set to release its fiscal Q3 results on Tuesday and RBC said it expects "modest topline results and in-line to slightly better" earnings per share, without material upside overall.

According to RBC, the company's international segment is expected to drive growth as domestic trends remain muted. The recovery process of PepsiCo's ( PEP ) Quaker unit showed minimal signs of improvement and volumes from company's PepsiCo Beverages North America unit remain soft, RBC added.

"Overall, we still see relatively low expectations for PEP but still have concerns on PEP's US business that will likely pressure go-forward numbers," the investment firm said.

RBC reiterated its sector perform rating on PepsiCo ( PEP ), and lowered its price target to $176 from $177.

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