Hansen, Mueller Industries director, sells $105,710 in stock
Investing.com - UBS has reiterated its Neutral rating and $25.00 price target on Reynolds Consumer Products Inc. (NASDAQ:REYN) ahead of the company’s third-quarter earnings report. According to InvestingPro data, the company maintains a "Good" financial health score, with liquid assets exceeding short-term obligations and consistent profitability over the last twelve months.
Reynolds Consumer Products is scheduled to release its third-quarter earnings results on Wednesday, October 29, before the market opens. UBS expects the company to report earnings per share of $0.39, which aligns with Visible Alpha consensus and falls at the midpoint of Reynolds’ guidance range of $0.37-$0.41. The company has demonstrated stable financial performance, with trailing twelve-month revenue of $3.69 billion and a healthy gross profit margin of 25.4%.
The firm notes that demand trends have remained largely stable for Reynolds Consumer Products, and believes Street estimates for both the quarter and full year appear achievable. UBS suggests that in what could be an underwhelming quarter for the consumer products sector, simply meeting expectations and reiterating guidance might be sufficient.
Reynolds Consumer Products shares have outperformed the Consumer Staples Select Sector SPDR Fund (XLP) by 570 basis points since late July, partly due to the company’s recent inclusion in the S&P Small Cap 600 index. UBS points out that while REYN’s valuation appears attractive on an absolute basis, it is trading slightly above historical averages relative to its peer group.
UBS maintains that a more attractive entry point or visibility on potential upside to Street estimates would be necessary before taking a more constructive stance on the stock. The company’s P/E ratio stands at 16.09x, with analysts’ price targets ranging from $22 to $30, reflecting mixed sentiment about its near-term potential.
In other recent news, Reynolds Consumer Products Inc . reported its Q2 2025 financial results, showing a slight increase in net revenues to $938 million, up from $930 million the previous year. The company maintained flat retail revenue while emphasizing innovations and strategic initiatives that appeared to boost investor confidence. These developments were reflected in a 2.09% rise in after-market trading. Analysts have not provided any recent upgrades or downgrades for the company, focusing instead on the impact of its strategic initiatives. Reynolds continues to focus on these strategies to maintain its market position. The company has not announced any mergers or acquisitions at this time. Investors are closely watching how these initiatives will affect future earnings and revenue.
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