Deutsche Bank Maintains Buy On Newell Rubbermaid, Increases PT To $40


In a research report published today, Deutsche Bank analyst Bill Schmitz maintained a Buy rating on Newell Rubbermaid (NYSE:NWL) and increased his price target to $40 (from $37), which represents a 17% upside from where the stock is currently trading.

Schmitz wrote, “As organizational overhaul gains steam and investments drive better growth in a modestly improving US macro environment, earnings and cash flow should accelerate, boosted by more capital allocated to acquisitions and international capability investments. While multiple has clearly expanded significantly off the bottom, we see enough juice in the model to drive industry leading EPS growth, with rising estimates lifting the share price with it provided US macro environment remains stable.”

The analyst added, “Armed with a pile of restructuring savings and a much leaner and efficient organizational structure, the company is one of the few remaining name in our group with enough embedded earnings flexibility to reinvest in growth as peers retrench. As highlighted during its much anticipated analyst day, a data-centric, agile structure is in place that enables management to invest aggressively and leverage resulting growth down the P&L and through the balance sheet and cash flow statement. Moreover, the company is significantly more levered to a better US economic environment, and as employment and disposable income rises, headwinds should become tailwinds, enhancing an already solid growth and cash flow algorithm.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Bill Schmitz has a total average return of 4.5% and a 70% success rate. Schmitz is ranked #1021 out of 3321 analysts.

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