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On Monday, Truist Securities expressed continued confidence in Newell Rubbermaid (NASDAQ:NWL) by maintaining a Buy rating and a $17.00 price target for the stock. The endorsement comes after the company shared its fourth-quarter 2024 results last Friday, which included earnings per share that exceeded expectations. Currently trading at $13,063.71, the stock has shown resilience with a 5.77% gain year-to-date. However, Newell Rubbermaid’s initial guidance for 2025 projected sales that were marginally lower than anticipated by Truist Securities.Get deeper insights into NWL’s valuation and growth potential with InvestingPro, featuring exclusive ProTips and comprehensive financial analysis.
The company’s stock experienced a sharp decline of 26% on Friday, a move that Truist analysts found surprising given the broader market’s minimal change, with the Consumer Staples Select Sector SPDR Fund (XLP) dropping only 0.2%. The stock is now trading well off its 52-week high of $13,188.41, though still above its 52-week low of $11,116.46. Truist analysts view the significant pullback in Newell Rubbermaid’s shares as an excellent opportunity for investors to buy.
In a statement, Truist analysts said, "To say we were surprised by the stock reaction, down 26% on Friday (vs. XLP -0.2%), is an understatement. We believe the pullback provides an excellent buying opportunity." They noted the company’s guidance as fairly benign and did not see the results as a cause for such a drastic sell-off in the stock.
Despite the lower sales forecast, Truist Securities has only slightly adjusted their estimates for 2025. They emphasize their belief in the company’s potential by reiterating the Buy rating and the $17 12-month price target. This target reflects Truist’s conviction in the value proposition that Newell Rubbermaid presents at its current valuation, post-decline. The stock has demonstrated strong momentum with a 9.34% gain over the past six months and an impressive 15.5% return over the past year.Discover the complete financial picture with InvestingPro’s detailed Research Report, part of our coverage of 1,400+ US stocks, offering professional-grade analysis and actionable insights.
Newell Rubbermaid’s fourth-quarter performance, coupled with their initial guidance for the next year, has led to mixed reactions in the market. While the stock took a significant hit following the announcement, Truist Securities remains steadfast in their outlook, suggesting that the current lower stock price may offer a favorable entry point for investors.
In other recent news, Newell Rubbermaid has been the subject of several analyst revisions following the company’s fourth-quarter earnings and revenue results. UBS adjusted its price target for the company to $8, maintaining a neutral stance. The firm noted that despite weaker than anticipated core sales and operating profit margin, Newell Rubbermaid’s earnings surpassed expectations due to strong gross margins. Canaccord Genuity also revised its outlook on the company, reducing its price target to $14 but maintaining a buy rating. The firm highlighted that the company’s fourth-quarter earnings met or slightly exceeded consensus expectations.
Simultaneously, Citi analysts reduced their price target for Newell Rubbermaid to $7.75, retaining a neutral stance on the stock. The adjustment follows a decline in the company’s stock price after lower-than-expected core sales for the fourth quarter. Despite this, the company managed to surpass earnings per share estimates. On the other hand, Canaccord Genuity increased its price target for the company to $15, maintaining a buy rating. The firm expressed optimism about a potential turnaround for the company, citing improvements in gross margin and sales under the leadership of CEO Chris Peterson.
In other recent developments, Newell Rubbermaid secured $1.25 billion through a notes offering. The transaction involved two sets of notes, with the company intending to use the proceeds to redeem its senior notes due in 2025 and 2026. This move is part of Newell Brands’ financial strategy to manage its debt profile.
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