Spectrum Brands Holdings: Strategic Decisions and Stock Performance Indicate Potential for Recovery, Upgraded to Buy

Canaccord Genuity analyst Brian McNamara upgraded the rating on Spectrum Brands Holdings (SPB – Research Report) to a Buy yesterday, setting a price target of $102.00.

Brian McNamara has given his Buy rating due to a combination of factors including Spectrum Brands Holdings’ recent performance and strategic decisions. Despite the mixed results in Q1 2025, with strong performance in Home and Garden and a miss in Global Pet Care, the company’s adjusted EPS and EBITDA surpassed consensus expectations significantly. Furthermore, the reaffirmation of the company’s guidance, coupled with the fact that recent stock performance does not align with these outcomes, suggests potential for recovery.
In addition, the company’s organic sales have seen a steady increase, and their share buyback activity has bolstered EPS estimates. While the Home and Personal Care division faces challenges from tariffs, McNamara sees the delay in its separation as an opportunity to innovate and enhance the value within the sector. The expectation that the company will continue to repurchase shares is viewed as a support mechanism for the stock price, contributing to McNamara’s decision to raise the price target to $102 and upgrade the stock to a Buy rating.

In another report released yesterday, Oppenheimer also maintained a Buy rating on the stock with a $105.00 price target.

SPB’s price has also changed slightly for the past six months – from $82.740 to $76.460, which is a -7.59% drop .