Siebel, Thomas M, CEO of C3.ai, sells $7.6m in stock
UBS maintained its Neutral rating and $5.00 price target on Newell Brands Inc (NASDAQ:NWL) following a Thursday meeting with the company’s management team. Currently trading at $13.17, the stock sits near its 52-week high of $13.30, showing strong momentum with a 12.9% return over the past year. The research firm noted a "constructive" tone from executives who displayed confidence in the company’s long-term trajectory. For deeper insights into NWL’s valuation and growth prospects, InvestingPro offers comprehensive analysis in its exclusive Pro Research Report.
Newell Brands emphasized that recent initiatives focused on tariff mitigation, innovation, and organizational alignment are establishing a foundation for sustained top-line growth and margin improvement. The company expects these benefits to materialize particularly in the second half of fiscal year 2025, with further acceleration anticipated in fiscal year 2026. The stock’s positive YTD return of 6.6% suggests investors are beginning to recognize these improvement efforts.
UBS acknowledged that Newell is delivering on objectives within its control but cited uncertainty regarding category growth as a potential limiting factor for top-line recovery. This uncertainty remains a key consideration in UBS’s decision to maintain its Neutral stance on the stock.
The research firm observed that Newell shares currently trade at a 30% discount to household and personal care peers, compared to the 10-year historical average discount of 20%. Despite this valuation gap, UBS noted that valuation alone has not proven to be a meaningful catalyst for the stock.
UBS indicated it could become "more constructive" on Newell if it gains greater confidence that the projected second-half improvement is materializing, but it remains "on the sidelines" until visibility improves.
In other recent news, Newell Brands Inc. has announced the pricing of a $1.25 billion senior unsecured notes offering, carrying an 8.50% interest rate and due in 2028. The company plans to use the proceeds, along with available cash, to fully redeem its 4.200% senior notes due in 2026, including related fees and expenses. Additionally, Newell Brands had previously announced plans for a $1 billion notes offering, also due in 2028, with the intention of using the proceeds similarly to redeem existing notes. Meanwhile, JPMorgan has upgraded Newell Brands from Neutral to Overweight, citing successful turnaround efforts and a competitive manufacturing footprint. The firm noted a 600 basis point margin improvement and an advantageous position in tariff regulations as key factors for the upgrade.
Canaccord Genuity, on the other hand, has maintained a Buy rating on Newell Rubbermaid, adjusting its price target to $11 from $12 following a first-quarter earnings report that met or exceeded expectations. The firm highlighted Newell’s strategic improvements and potential for sustainable growth despite tariff challenges. Canaccord’s analysis suggests Newell Brands could emerge as a net beneficiary in the long run, given its strategic direction and market positioning. These developments collectively reflect ongoing strategic maneuvers and financial adjustments by Newell Brands as it navigates market conditions.
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