Truist Securities has updated its outlook on Newell Rubbermaid (NASDAQ: NASDAQ:NWL), raising the price target to $10 from the previous $8 while keeping a Hold rating on the stock in the wake of the company's second-quarter earnings report released last Friday.
Truist has adjusted its sales forecasts for Newell Rubbermaid for the fiscal years 2024 and 2025. The new estimates from Truist stand at $7.607 billion and $7.663 billion, respectively, marking a decrease from the prior estimates of $7.688 billion for FY24 and $7.743 billion for FY25.
In addition to the sales estimates, Truist has also altered its earnings per share (EPS) projections for the company. The adjusted EPS estimate for FY24 has been increased to $0.63, up from the earlier forecast of $0.58. Conversely, the FY25 adjusted EPS estimate has been reduced to $0.70 from the previously anticipated $0.81.
The price target adjustment to $10 reflects Truist's analyst's recognition of Newell Rubbermaid's improved profitability and cash flow.
Newell recently reported robust second-quarter results, including a significant beat on adjusted EBITDA and earnings per share, leading Canaccord Genuity to maintain its Buy rating and increase the price target to $12.00. The company's Learning & Development segment notably exceeded forecasts, and all three business segments reported a beat on core organic sales.
RBC Capital Markets has also raised its price target for Newell Brands to $9.50, reflecting a positive response to the company's second-quarter results. Despite challenges from inflation and foreign exchange rates, the company has seen promising results from its premiumization strategy and improvements in gross margin.
InvestingPro Insights
As Newell Rubbermaid (NASDAQ:NWL) navigates through its restructuring phase, recent performance data from InvestingPro offers a glimpse into the stock's trajectory. Over the past week, the company has seen a modest price total return of 0.17%. However, a broader look reveals a more encouraging trend, with a 1-month return of 2.16%, a 3-month return of 4.05%, and an impressive 6-month return of 8.73%. Furthermore, the year-to-date return stands at 10.72%, with a 1-year return reaching 14.03%, signaling a potentially positive outlook for investors eyeing long-term gains.
Additionally, with the previous close at 11953.28 USD, Newell Rubbermaid's stock performance aligns with the cautious optimism expressed by Truist Securities. For investors seeking more in-depth analysis, InvestingPro offers a wealth of InvestingPro Tips that can provide further guidance on whether to hold, sell, or buy Newell Rubbermaid shares. Currently, there are 7 additional InvestingPro Tips available, which could be particularly valuable for those looking to make informed decisions based on the latest market data.
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