Brown-Forman (BF.A, BF.B) is still seen as a "show me story" and needs to post "multiple quarters of consistency" in order to regain investor confidence, RBC Capital said in a Friday note.

The alcoholic beverage producer's visibility is "still lacking" as improvements are needed in key developed markets so that the stock can "truly work," RBC said.

The company's gross margins are anticipated to rise year-over-year, but this may be entirely driven by the divestiture of lower margin brands, the analysts said .

RBC maintained a sector perform rating on the stock with a $30 price target.