Newell Brands (NWL) Receives a Buy from Wells Fargo

In a report released today, Bonnie Herzog from Wells Fargo maintained a Buy rating on Newell Brands (NWLResearch Report), with a price target of $22. The company’s shares closed last Monday at $15.82.

Herzog commented:

“We’ve updated our model to reflect the reclassification of Rubbermaid Commercial Products (RCP) into continuing ops, and we came away with greater confidence in NWL’s cash flow prospects & ability to hit its leverage targets (under 4.0x by YE19 & 3.5x by YE20). We now expect accelerated/higher debt repayment in FY19/FY20 & as such, raise our on lower interest exp. Looking forward, we see several near-term potential catalysts, including: (1) New CEO Ravi Saligram starting on 10/2, forming a power duo w/ CFO The final wave of divestitures, which is expected to generate $675- $775MM of after-tax proceeds in 2H19; and (3) An upside surprise in Q3 given guidance was set very conservatively (again), particularly for EBIT margin (down -100 to -130bps), where NWL beat guidance handily in Q1/Q2.”

According to, Herzog is a 3-star analyst with an average return of 2.8% and a 62.4% success rate. Herzog covers the Consumer Goods sector, focusing on stocks such as The Estée Lauder Companies Inc, Constellation Brands Inc, and Edgewell Personal Care.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Newell Brands with a $21.33 average price target, a 34.3% upside from current levels. In a report issued on August 14, Citigroup also maintained a Buy rating on the stock with a $24 price target.

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The company has a one-year high of $24.57 and a one-year low of $13.04. Currently, Newell Brands has an average volume of 5.21M.

Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NWL in relation to earlier this year.

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Newell Brands, Inc. engages in the manufacture, marketing, and sale of consumer and commercial products. It operates through the following segments: Food and Appliances; Home and Outdoor Living; and Learning and Development.