Wells Fargo upgraded shares of Newell Brands (NYSE:NWL) from a market perform rating to an outperform rating in a report issued on Tuesday, MarketBeat.com reports. Wells Fargo currently has $33.00 price objective 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.”,” the firm’s analyst commented.
NWL has been the topic of a number of other reports. Royal Bank of Canada reaffirmed a sector perform rating and set a $27.00 price target on shares of Newell Brands in a research report on Tuesday, February 20th. SunTrust Banks lowered shares of Newell Brands from a buy rating to a hold rating in a research report on Tuesday, March 27th. Zacks Investment Research raised shares of Newell Brands from a sell rating to a hold rating and set a $36.00 price target on the stock in a research report on Monday, January 8th. Jefferies Group reaffirmed a hold rating and set a $32.00 price target on shares of Newell Brands in a research report on Thursday, January 25th. Finally, Morgan Stanley lowered shares of Newell Brands from an overweight rating to an equal weight rating and lowered their price target for the stock from $38.00 to $25.00 in a research report on Thursday, January 25th. Two investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating, five have given a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of Hold and an average target price of $33.06.
Newell Brands (NYSE:NWL) last released its quarterly earnings results 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 business had revenue of $3.74 billion for the quarter, compared to analyst estimates of $3.69 billion. During the same period last year, the firm earned $0.80 earnings per share. Newell Brands’s revenue for the quarter was down 9.5% compared to the same quarter last year. equities research analysts anticipate that Newell Brands will post 2.67 earnings per share for the current year.
A number of hedge funds have recently added to or reduced their stakes in NWL. Buckingham Capital Management Inc. increased its holdings in Newell Brands by 7.5% in the 3rd quarter. Buckingham Capital Management Inc. now owns 30,015 shares of the company’s stock valued at $1,281,000 after buying an additional 2,085 shares during the period. Dimensional Fund Advisors LP increased its holdings in Newell Brands by 30.0% in the 3rd quarter. Dimensional Fund Advisors LP now owns 2,122,155 shares of the company’s stock valued at $90,528,000 after buying an additional 489,138 shares during the period. Vident Investment Advisory LLC bought a new position in Newell Brands in the 3rd quarter valued at about $306,000. Janus Henderson Group PLC grew 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 during the last quarter. Finally, Janney Montgomery Scott LLC grew 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 during the last quarter. 92.82% of the stock is currently owned by hedge funds and other institutional investors.
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Newell Brands Company Profile
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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