Canaccord maintains Buy on Newell Rubbermaid, target at $11

On Monday, Canaccord Genuity sustained its optimistic stance on Newell Rubbermaid (NASDAQ:NWL) shares, maintaining a Buy rating and a price target of $11.00. With the stock currently trading at $13.17, near its 52-week high of $13.25, the endorsement follows a recent progress update from the company, which took place at a competitor conference last week.Discover deeper insights into NWL’s valuation and growth potential with InvestingPro, featuring exclusive analysis and key metrics. Newell Rubbermaid’s CEO, Chris Peterson, had previously introduced a new strategy two years ago, and the latest report highlighted several achievements since then.

The company has successfully continued its brand and SKU rationalization, fostering a renewed dedication to innovation with a strong pipeline. Additionally, Newell Rubbermaid has developed a supply chain that is now seen as a competitive advantage. These improvements have been recognized as key factors contributing to the positive outlook.

Canaccord Genuity’s analysis suggests that tariffs will ultimately favor Newell Rubbermaid by potentially eliminating weaker competitors that rely on a single source. The firm anticipates that these developments will enable the company to achieve modest but sustainable organic growth in the low single-digit percentage range.

The reiterated price target of $11.00 reflects Canaccord Genuity’s confidence in Newell Rubbermaid’s strategic direction and its ability to navigate the market effectively. The firm’s endorsement underscores the potential they see in the company’s long-term growth and market positioning.

In other recent news, Newell Brands has priced an offering of $1.25 billion in senior unsecured notes with an 8.50% interest rate, due in 2028. The company plans to use the proceeds from this offering, along with existing cash, to fully redeem its 4.200% senior notes due in 2026 and cover related fees and expenses. This follows an earlier announcement where Newell Brands intended to offer $1 billion in senior unsecured notes, with the final pricing now confirmed at $1.25 billion. Canaccord Genuity has revised its price target for Newell Brands to $11 from $12, maintaining a Buy rating, following the company’s first-quarter earnings report, which met or slightly exceeded consensus estimates. Newell Brands has adjusted its core sales growth projections to a decline of 1% to 2%, although it continues to see positive growth in specific segments. The company is navigating tariff-related challenges, with 15% of its sourcing from China, but anticipates long-term benefits as competitors with single-source dependencies may face difficulties. Canaccord Genuity’s revised outlook considers Newell Brands’ strategies to mitigate tariff impacts and its second-quarter guidance. These developments reflect Newell Brands’ ongoing efforts to manage financial strategies and market conditions.

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