Newell Brands, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Brian McNamara from Canaccord Genuity maintained a Buy rating on the stock and has a $7.00 price target.
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Brian McNamara has given his Buy rating due to a combination of factors that indicate a positive outlook for Newell Brands. The company’s management team has shown confidence in their ongoing turnaround strategy, which has been in progress for over two years. This confidence was evident during recent investor meetings, where the management’s optimistic outlook surprised many investors who had anticipated a more negative sentiment.
Additionally, Newell Brands has initiated a significant cost-saving plan, including a workforce reduction and store closures, which is expected to generate substantial annualized pre-tax cost savings. These measures are aligned with the company’s strategy to optimize its retail footprint and adapt to modern consumer behaviors. Furthermore, the integration of AI and automation into their operations is driving efficiencies and enhancing capabilities, positioning the company for future growth. Despite some challenges in sales trends, particularly in Latin America, the company has maintained its guidance for key financial metrics, reinforcing the potential for a successful turnaround.
McNamara covers the Consumer Cyclical sector, focusing on stocks such as Yeti Holdings, SharkNinja, Inc., and Rollins. According to TipRanks, McNamara has an average return of -5.2% and a 42.16% success rate on recommended stocks.