Wells Fargo upgraded shares of Newell Brands (NYSE:NWL) from a market perform rating to an outperform rating in a report released on Tuesday morning, Marketbeat reports. Wells Fargo currently has $33.00 target price on the stock.
“We estimate “new NWL” FY19 EPS of $2.76. We raise our price target by $8 to $33 implying a 12x FY19E P/E multiple (post divestitures). Reasons for Our Upgrade – NWL shares are down -56% vs. S&P +15% in the last year. Looking forward, we believe the risk/reward is more positive for NWL shares, including several n.t. catalysts (finally!). Key reasons for our upgrade include: (1) Current Valuation not Reflective of NWL’s Underlying Value – We believe NWL’s individual businesses are very undervalued at the current price, and the pending divestitures will unlock significant value, which we believe will result in a re-rating of NWL shares; (2) “New Newell” Will Be More Fundamentally Attractive – While there is still question of what exactly will be left when all divestitures are completed (we take a shot at it below), we believe new NWL will be a simpler, faster growing, higher margin business, with significant exposure to e-commerce (20%+ of sales); (3) N.T.”,” Wells Fargo’s analyst commented.
NWL has been the subject of a number of other research reports. BMO Capital Markets decreased their price objective on shares of Newell Brands to $25.00 and set a market perform rating for the company in a research note on Friday, January 26th. Zacks Investment Research downgraded shares of Newell Brands from a hold rating to a sell rating in a research report on Monday, January 29th. Vetr upgraded shares of Newell Brands from a buy rating to a strong-buy rating and set a $29.00 target price for the company in a research report on Monday, March 26th. Bank of America downgraded shares of Newell Brands from a buy rating to a neutral rating in a research report on Thursday, January 25th. Finally, SunTrust Banks reiterated a buy rating and issued a $35.00 target price on shares of Newell Brands in a research report on Tuesday, January 30th. Two analysts have rated the stock with a sell rating, thirteen have given a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. The company currently has an average rating of Hold and an average target price of $33.06.
Newell Brands (NYSE:NWL) last posted its quarterly earnings data on Friday, February 16th. The company reported $0.68 EPS for the quarter, topping analysts’ consensus estimates of $0.67 by $0.01. Newell Brands had a net margin of 18.65% and a return on equity of 10.47%. The firm had revenue of $3.74 billion during the quarter, compared to analyst estimates of $3.69 billion. During the same quarter last year, the business posted $0.80 EPS. The company’s revenue was down 9.5% on a year-over-year basis. equities analysts forecast that Newell Brands will post 2.67 EPS for the current year.
Several institutional investors have recently added to or reduced their stakes in NWL. Buckingham Capital Management Inc. raised its holdings in shares of Newell Brands by 7.5% during the 3rd quarter. Buckingham Capital Management Inc. now owns 30,015 shares of the company’s stock valued at $1,281,000 after purchasing an additional 2,085 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Newell Brands by 30.0% during the 3rd quarter. Dimensional Fund Advisors LP now owns 2,122,155 shares of the company’s stock valued at $90,528,000 after purchasing an additional 489,138 shares in the last quarter. Vident Investment Advisory LLC bought a new position in shares of Newell Brands during the 3rd quarter valued at $306,000. Janus Henderson Group PLC raised its holdings in shares of Newell Brands by 46.6% during the 3rd quarter. Janus Henderson Group PLC now owns 128,674 shares of the company’s stock valued at $5,491,000 after purchasing an additional 40,912 shares in the last quarter. Finally, Janney Montgomery Scott LLC raised its holdings in shares of Newell Brands by 14.5% during the 3rd quarter. Janney Montgomery Scott LLC now owns 20,319 shares of the company’s stock valued at $867,000 after purchasing an additional 2,566 shares in the last quarter. Institutional investors and hedge funds own 92.82% of the company’s stock.
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About Newell Brands
Newell Brands Inc is a marketer of consumer and commercial products. The Company’s segments include Writing, Home Solutions, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions and Process Solutions. Its products are marketed under a portfolio of brands, including Paper Mate, Sharpie, Dymo, Expo, Parker, Elmer’s, Coleman, Jostens, Marmot, Rawlings, Mr.
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