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JPMorgan upgraded Newell Brands Inc (NASDAQ:NWL) from Neutral to Overweight on Friday, raising its price target to $7.00 from $6.00 as the consumer goods company shows signs of successful turnaround efforts. The stock has demonstrated strong momentum, posting a 13.6% return over the past year. For deeper insights into Newell’s valuation and growth metrics, InvestingPro offers comprehensive analysis and Fair Value estimates.
The upgrade reflects JPMorgan’s confidence in Newell’s increased innovation speed, distribution gains with key retailers, and potential for market share improvement. This optimism appears well-founded, with the stock delivering a 7.69% return year-to-date. The firm highlighted Newell’s manufacturing footprint as a competitive advantage, with 15 U.S. facilities and two Mexican plants that comply with U.S. MCA regulations.
JPMorgan noted Newell’s tariff advantage in 19 product categories compared to competitors who primarily source from abroad. This positioning could prove beneficial as Newell competes against both branded rivals and private label products.
The firm pointed to margin improvements of approximately 600 basis points driven by innovation and turnaround momentum. Financial deleveraging was also cited as a factor in the more positive outlook for the company.
JPMorgan’s assessment followed meetings with Newell’s senior management, including CFO Mark Erceg and SVP of IR Joanne Freiberger, which reinforced the firm’s view that Newell is "finally on the right track" with a more focused portfolio and improved systems and logistics. The stock currently trades near $13,300, having bounced significantly from its 52-week low of $11,100. For detailed financial analysis and expert insights, access Newell’s comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Newell Brands has been active in the financial markets with significant updates. The company priced a $1.25 billion senior notes offering with an 8.50% interest rate due in 2028, using the proceeds to redeem its 4.200% senior notes due in 2026. This move is part of a broader financial strategy, as Newell Brands also announced plans for a $1 billion notes offering, contingent on market conditions.
In terms of earnings, Newell Brands’ recent first-quarter report met or slightly exceeded consensus estimates, maintaining a stable market position despite tariff concerns. The company has adjusted its core sales growth projections from flat to a decline of 1% to 2%, suggesting challenges ahead. However, positive core sales growth in its Learning & Development segment and International business for five consecutive quarters indicates some strategic success.
Canaccord Genuity has maintained a Buy rating on Newell Rubbermaid, though it revised the price target to $11 from $12, reflecting a cautious yet optimistic outlook. The firm’s analysis points out that tariffs could potentially benefit Newell Rubbermaid by eliminating weaker competitors. These developments highlight Newell Brands’ strategic maneuvers and the ongoing adjustments in response to market conditions.
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