Oppenheimer analyst Rupesh Parikh maintained a Hold rating on Newell Brands (NYSE: NWL) today. The company’s shares opened today at $26.80, close to its 52-week low of $23.85.
Parikh observed:
“We overall view the Q1 results and more importantly the value creation potential as modestly ahead of underlying expectations. On the positive side, management was able to still maintain the full year EPS guidance range of $2.65-2.85 vs. our expectations for a reduction as we telegraphed on our preview on 5/1. In addition, we see greater value creation vs. our prior model with L-T earnings power north of $3 vs. about $2.50 in our prior model. On the negative side, organic sales deteriorated sequentially driven primarily by retail headwinds. With our updated projections, we now see a mid-to-high $20’s trading range, vs. the mid-$20’s previously, given the longer-term valuation creation potential slightly greater than our expectations.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 15.7% and a 59.4% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.
Currently, the analyst consensus on Newell Brands is Hold and the average price target is $28.40, representing a 6.0% upside.
In a report released today, Jefferies also maintained a Hold rating on the stock with a $29 price target.
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Based on Newell Brands’ latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $3.74 billion and quarterly net profit of $1.65 billion. In comparison, last year the company earned revenue of $3.27 billion and had a net profit of $639 million.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NWL in relation to earlier this year.
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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: Writing, Home Solutions, Tools, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions, and Process Solutions.
