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Investing.com - Citi raised its price target on Newell Brands Inc (NASDAQ:NWL) to $6.00 from $5.00 while maintaining a Neutral rating on the consumer goods company. The stock has shown resilience this year, with a YTD return of 9% and trading at $134.66, near its 52-week high of $135.95.
The firm expects Newell to report "another soft quarter" for Q2 2025, with core sales declining 2.9%, within the company’s guidance range of -3% to -5%.
U.S. scanner data has shown sequential improvement compared to Q1 2025, but remains weak on a year-over-year basis, according to Citi’s analysis.
Citi anticipates Newell will report second-quarter earnings per share of $0.23, compared to the company’s guidance range of $0.21-$0.24.
The firm attributes its earnings expectations to continued gross margin expansion driven by productivity savings, two rounds of 10% pricing increases on Baby Gear during the quarter, and minimal headwinds from China tariffs.
In other recent news, Newell Brands has priced a $1.25 billion senior unsecured notes offering with an 8.50% interest rate, set to mature in 2028. The proceeds, combined with available cash, are intended to redeem 4.200% senior notes due in 2026, alongside covering related fees and expenses. Additionally, Newell Brands announced plans for a $1 billion notes offering, also due in 2028, with proceeds similarly aimed at redeeming the 2026 notes. On the analyst front, JPMorgan upgraded Newell Brands from Neutral to Overweight, raising its price target to $7.00, citing successful turnaround efforts and innovation speed. UBS maintained its Neutral rating with a $5.00 price target, noting confidence in long-term growth but remaining cautious due to uncertainties in category growth. Canaccord Genuity continued its Buy rating with an $11.00 price target, highlighting achievements in brand rationalization and supply chain improvements. These developments reflect ongoing strategic efforts and market positioning for Newell Brands.
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