Brown-Forman's (BF.A, BF.B) is expected to continue to face challenges amid global macro uncertainties and ongoing category pressure in the US, its biggest market, RBC Capital Markets said in a note Tuesday.

Tariff concerns over the company's tequila portfolio sold in the US could add to margin headwinds clouding its earnings prospects, the firm also said, ahead of Brown-Forman's fiscal Q2 results.

"We see near term pressures continuing to weigh on numbers despite easier compares ahead," RBC said. "Given category pressures, an uncertain global macro environment, and low visibility into category normalization, we still expect cautious commentary from management."

RBC said it is thus not eager to step in even as the stock appears to be historically inexpensive and short interest has moderated from September highs.

"While shares continue to underperform and valuation nears 10 year lows, we still see more of the same dynamics at play for BF.B," the firm said.

RBC reiterated its sector perform rating on the stock with a $49 price target.