Campbell's (CPB) remains under pressure ahead of its fiscal Q1 earnings as weakness in the snacking category and rising competition continue to weigh on expectations, RBC Capital Markets said in a report emailed Monday.

RBC analysts maintained their "negative" view on Campbell's, citing ongoing share losses, underperformance relative to peers, and a lack of clear catalysts for improvement despite the stock's inexpensive valuation, according to the report.

RBC noted stronger positioning in the meals and beverages segment as consumers shift toward value and at-home dining, and flagged potential near-term soup strength tied to pantry stocking ahead of expected Supplemental Nutrition Assistance Program benefit delays, though any benefit would likely reverse later, according to the report.

Campbell's is also navigating "higher input costs" heading into fiscal 2026 while trying to reinvest in marketing and innovation to revive key brands. The firm said pricing actions will be harder to take due to "consumer wallet

pressure," and additional spending may be needed if the snacking category does not improve in H2 of the fiscal year, the report said.

RBC has a sector perform rating on Campbell's, with a price target of $35.

Shares of the company were up 1.8% in recent Monday trading.

Price: 30.14, Change: +0.54, Percent Change: +1.82