Jefferies Reiterates Buy on Newell Rubbermaid (NWL) After Meeting with Management
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Jefferies maintained a Buy rating and $66.00 price target on Newell Rubbermaid (NYSE: NWL) after meeting with management. Jefferies is expecting the company to make cuts to its portfolio ahead of the 3Q release, and is sees a potential $0.10 EPS dilution as manageable. Management has not specified which businesses will be cut. However, the Tools and Process Solutions businesses are low-hanging fruit.
Analyst Kevin Grundy commented, "NWL remains one of our top picks following upbeat mgmt. meetings yesterday. The biz continues to perform well and the JAH integration remains on track, keeping us very positive on risk-reward. Portfolio pruning announcement is likely ahead of 3Q earnings and we see potential EPS dilution of ~$0.10 as manageable (or even fully offset), and far less consequential than strategic merits, margin accretion, and benefit to multiple. Buy, $66 PT, a top pick."
Shares of Newell Rubbermaid closed at $52.25 yesterday.
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