RBC Capital analyst Nik Modi names Monster Beverage (MNST), Kenvue (KVUE), and Primo Brands (PRMB) as the firm’s Top Picks ahead of Q1 earnings season in Consumer Packaged Goods, or CPG. The firm expects another challenging quarter for most CPG companies highlighted by sluggish topline trends with less wiggle room on EPS relative to some previous quarters due to volume deleverage, and while FX has gotten slightly better, a host of regulatory & geopolitical risks remain front and center, the analyst tells investors in a research note. For Monster, the firm is expecting solid topline results building on category recovery with resilient U.S. trends, while Primo results are expected to show evidence of continued strong consumer demand paired with reinforced mgmt. confidence that they will at least achieve FY25 guidance, RBC states. Kenvue’s quarter is expected to be inline, though the company “still has more work to do in Skin Health & Beauty”, the firm added. RBC maintains Outperform ratings on Monster Beverage and Primo Brands with unchanged $63 and $40 price targets. For Kenvue, RBC keeps its Sector Perform rating with $24 price target.
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