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Investing.com - Wells Fargo (NYSE:WFC) maintained its Equal Weight rating and $60 price target on Spectrum Brands (NYSE:SPB) in a research note released Friday. According to InvestingPro data, analyst targets for the stock range from $60 to $95, with the company currently trading at an EV/EBITDA multiple of 7.16x.
The firm’s analysis highlighted encouraging signs for the consumer products company, including improvements heading into the fiscal fourth quarter and management’s reiterated free cash flow guidance, which represents an 11% yield. The company’s strong financial health is reflected in its current ratio of 2.34, indicating liquid assets well exceed short-term obligations.
Wells Fargo noted that Spectrum Brands achieved 95% fill rates during the quarter, indicating solid supply chain performance despite sales pressure. The firm’s $60 target represents 7x calendar year 2026 estimated EBITDA, which aligns with small and mid-cap home and personal care companies trading at mid-to-high single digits. While the stock has taken a significant hit over the past six months (-26.18%), it has shown recent momentum with an 8.24% gain in the past week.Get deeper insights into Spectrum Brands with InvestingPro, which offers exclusive analysis and 6 additional ProTips for informed decision-making.
The research note identified two key questions remaining for the company: the long-term run-rate of sales with supply chain improvements now in place, and whether the free cash flow can be maintained despite pressure on net income.
Wells Fargo indicated that greater visibility on either sales trajectory or free cash flow sustainability could improve the stock’s outlook, but debates will persist until then.
In other recent news, Spectrum Brands Holdings Inc . disclosed its fiscal third-quarter earnings on August 7, 2025, revealing a mixed financial outcome. The company reported earnings per share of $1.24, which did not meet the forecasted $1.35, resulting in an 8.15% negative surprise. Revenue also fell short of expectations, totaling $699.6 million compared to the anticipated $745.55 million, marking a 6.16% shortfall. Despite these misses, the company’s stock experienced a notable increase, indicating investor optimism about its future. This development comes amid a period of heightened interest in Spectrum Brands’ performance and market strategies. Analysts continue to monitor the company’s financial health closely, with some firms potentially adjusting their outlooks based on these results. Spectrum Brands’ recent earnings report is a key focus for investors seeking insights into the company’s financial trajectory.
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