Wells Fargo analyst Bonnie Herzog reiterated a Buy rating on Newell Brands (NWL) today and set a price target of $36. The company’s shares closed yesterday at $20.40.
Herzog observed:
“We also see several potential positive catalysts, including initial FY19 guidance (likely mid-Feb) and the final round of asset divestitures in 1H19. In addition, we expect NWL to provide a detailed roadmap for the continuing ops business, with detailed deliverables (perhaps at CAGNY), which we believe should give investors more confidence & clarity in NWL’s l.t. earnings/cash flow prospects. NWL shares have shown solid follow-through after the stock jumped on Q3 earnings (+8% vs. and while we are prudently trimming our estimate for total divestiture proceeds to just under $10B (given rising interest rates, a choppier business environment & the multiples received to date), we continue to see a favorable risk/reward & significant upside to shares from here. We reiterate our Outperform rating and $36 price target.”
According to TipRanks.com, Herzog is a 4-star analyst with an average return of 5.7% and a 60.9% success rate. Herzog covers the Consumer Goods sector, focusing on stocks such as The Estée Lauder Companies Inc, Constellation Brands Inc, and Edgewell Personal Care.
Newell Brands has an analyst consensus of Moderate Buy, with a price target consensus of $24.29.
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Based on Newell Brands’ latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $7.31 billion. In comparison, last year the company had a net profit of $234 million.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is neutral on the stock.
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Newell Brands, Inc. engages in the manufacture, marketing, and sale of consumer and commercial products. It operates through the following segments: Live, Learn, Work, Play, and Other. The Live segment sources, markets, and distributes a line of household products.
