Campbell's (CPB) appears to be moving in the wrong direction and is unlikely to see immediate relief from continuing demand pressures, RBC Capital Markets said in a note Wednesday.
The brokerage said it is about in line with consensus estimates for the company's fiscal Q3 results, which are expected on June 8.
Analysts said the company continues to struggle to improve volume and share performance.
The company's Snacks segment is facing greater competitive pressure and consumer pullback, while its meals and beverages division is seeing signs of likely deterioration, according to the note.
From a demand perspective, packaged food is still facing "consumer pressure, pricing-driven volume elasticity payback, and elevated competitive promotional activity," the brokerage said.
RBC Capital Markets has a sector perform rating on Campbell's and a $23 price target.
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