Spectrum Brands Holdings Received its Third Buy in a Row

After Wells Fargo and BMO Capital gave Spectrum Brands Holdings (NYSE: SPB) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Ian Zaffino maintained a Buy rating on Spectrum Brands Holdings yesterday and set a price target of $105. The company’s shares closed yesterday at $78.75.

Zaffino noted:

“During recent investor meetings, newly appointed CEO David Maura emphasized the majority of SPB’s ailments have been self-inflicted. In fact, the order book is strong, production/shipments issues have improved and guidance appears reasonable. Catalysts abound: the HRG deal should close by end of June, the Batteries sale should close in CY2H18 and an announcement of an Appliance buyer should happen in the next two to three months. These transactions will give SPB cash to meaningfully delever and repurchase ~25% of its shares outstanding. We revise FY2018E/FY2019E adjusted EPS to $3.52/$4.85 from $3.49/$4.74 to reflect previous buybacks. Maintain Outperform, lower PT to $105, from $130, owing to lower group multiples.”

According to TipRanks.com, Zaffino is a 4-star analyst with an average return of 3.1% and a 57.5% success rate. Zaffino covers the Services sector, focusing on stocks such as Servicemaster Global Holdings, Peak Resorts, and Six Flags.

Spectrum Brands Holdings has an analyst consensus of Strong Buy, with a price target consensus of $115.83.

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Spectrum Brands Holdings’ market cap is currently $4.36B and has a P/E ratio of 13.73. The company has a Price to Book ratio of 2.57.

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Spectrum Brand Holdings, Inc. engages in the manufacture, market, and distribution of consumer products. The company operates through the following segments: Global Batteries and Appliances (GBA); Global Pet Supplies (PET); Home and Garden (H&G); and Hardware and Home Improvement (HHI); and Global Auto Care (GAC).