Campbell's (CPB) could face continued pressure from weak snack demand, higher costs, inflation risks and a slow recovery in key products, though cooking sauce, broth consumption, cost cuts and pricing actions may offer some support, RBC Capital Markets said in a note Tuesday.

RBC expects demand challenges to continue into next year, especially in snacks, where improvement is likely to take time, according to the note.

The investment firm said Campbell's kept its full-year outlook but pointed investors toward the lower end, with adjusted EPS now likely around $2.20 or below. RBC said inflation could stay high in fiscal 2027 if the Middle East conflict continues and oil remains near $100 a barrel.

Rao's remains a strong growth driver, helped by higher sauce demand and low household penetration, which leaves room for more gains, RBC added.

RBC kept its sector perform rating and lowered its price target for Campbell's to $21 from $23.

Price: 21.90, Change: +0.41, Percent Change: +1.91