RBC Capital lowers Spectrum Brands stock price target on tariff impacts

Published 11/08/2025, 15:30
RBC Capital lowers Spectrum Brands stock price target on tariff impacts

Investing.com - RBC Capital lowered its price target on Spectrum Brands (NYSE:SPB) to $75.00 from $80.00 on Monday while maintaining an Outperform rating on the stock. The company’s shares, currently trading at $57.20, appear undervalued according to InvestingPro analysis, despite falling over 25% in the past six months.

The price target reduction follows Spectrum Brands’ fiscal third-quarter results, which showed double-digit organic growth decline due to supply challenges stemming from shipment halts in response to tariff impacts.

RBC Capital noted that Spectrum Brands has taken corrective actions that have fully eliminated its tariff exposure, which the firm described as "no small task."

The firm expressed some caution regarding incremental pricing given that "consumers remain fragile," but indicated that the fiscal fourth quarter "looks to be shaping up strong thus far."

Despite lowering the price target, RBC Capital maintained its Outperform rating on Spectrum Brands, suggesting the worst may be over as sequential top-line improvement is encouraging, though it acknowledged that visibility remains limited as the company has not reinstated guidance.

In other recent news, Spectrum Brands reported its fiscal third-quarter earnings, revealing mixed results. The company posted an earnings per share (EPS) of $1.24, which was below the forecasted $1.35, representing an 8.15% negative surprise. Revenue also fell short of expectations, coming in at $699.6 million compared to the anticipated $745.55 million, a 6.16% shortfall. Despite these misses, investor sentiment appeared positive. Wells Fargo (NYSE:WFC) maintained its Equal Weight rating on Spectrum Brands, keeping the stock price target at $60. The firm noted encouraging developments, such as improvements heading into the fiscal fourth quarter and management’s reiterated free cash flow guidance, which suggests an 11% yield. These recent developments highlight the mixed but optimistic outlook for Spectrum Brands.

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