National Beverage's (FIZZ) fiscal Q4 results are unlikely to change a risk/reward scenario that skews to the downside, as volume growth is expected to remain constrained, while margin pressures from input costs and volume deleverage are likely to make fiscal 2027 another muted year for the bottom line, UBS Securities said Monday.

Fiscal Q1 volume trends remained under pressure from consumers, but the company observed stronger trends in June and said some headwinds were easing, largely driven by innovation and promotions, the note added.

After meaningful promotional activity, the company is seeing pricing actions from competitors, the brokerage said.

The company expects gross margin pressures, primarily driven by aluminum and input cost pressures, to continue. However, it does not expect the same magnitude as in fiscal Q4, according to the note.

UBS kept a sell rating on National Beverage with a price target of $33.

Shares of National Beverage were down more than 5% in Monday trading.

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