Campbell's (CPB) fiscal Q4 results were "not as bad" as anticipated by bears, some of whom likely expected more downside to the quarter and/or outlook, RBC Capital Markets said in a note Thursday.

The brokerage said there were "no real surprises" in the latest quarter as strength in meals and beverages continued to offset weakness in snacks.

RBC noted that in the coming year, Campbell's sees "substantial" input cost pressures mainly due to tariffs, which are weighing on its guidance despite mitigation initiatives.

The firm said it is encouraging to see the company's efforts to offset incremental costs, but added it maintains some caution on top-line trajectory as headwinds in the snacking category continue.

RBC reiterated the company's sector perform rating and $35 price target.

Shares of Campbell's were down nearly 3% in recent trading.

Price: 32.76, Change: -0.97, Percent Change: -2.88