In a report released on August 1, Andrea Faria Teixeira from J.P. Morgan maintained a Buy rating on Newell Brands, with a price target of $7.00.
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Andrea Faria Teixeira has given her Buy rating due to a combination of factors that suggest potential upside for Newell Brands. Despite the recent guidance cut, the analyst believes that the worst is likely behind the company, and the current market selloff presents a buying opportunity. Newell Brands has shown resilience by expanding margins for seven consecutive quarters, driven by cost-cutting measures and a focus on operating expense rationalization. The company’s strong U.S. manufacturing presence positions it as tariff-advantaged, which is expected to aid in securing additional retailer wins and improving core sales.
Furthermore, Newell Brands’ management remains committed to margin-accretive innovation and strict cash flow management, which should enhance margins in the coming years. The potential reduction in China sourcing and the possibility of tariff exemptions for baby gear could further bolster margins. The revised price target of $7, based on a blend of P/E and EV/EBITDA multiples, offers an attractive upside, reinforcing the Buy recommendation.
In another report released on August 1, Barclays also maintained a Buy rating on the stock with a $9.00 price target.