Newell Brands (NWL) is likely making progress after it implemented its new business model, RBC Capital Markets said Wednesday in a note ahead of the company's Q4 results.

"While not out of the woods yet, we see NWL continuing to make progress following the implementation of its new business model and believe the company is headed in the right direction, though it is still early," the report said.

RBC said it's "slightly above" the midpoint of Newell's core sales growth guidance in Q4 while consensus estimates are at the upper end of the range. Its results are scheduled for Friday.

"We think a decent holiday season could support top-line, but data points for discretionary categories look mixed thus far," the note said, adding the Q4 setup doesn't "look particularly challenging against a -9.3% core sales comp in the YA period."

RBC has a sector perform rating on Newell and a $9.50 price target.

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