Newell Brands (NWL): Cutting PT - Jefferies

Jefferies analyst, Kevin Grundy, reiterated his Buy rating on shares of Newell Rubbermaid (NYSE: NWL) but cut his price target to $61 from $65 after the CEO's Consumer Analyst Group of New York (CAGNY) presentation.

The CEO provided reassuring commentary on the long-term value creation from the JAH acquisition (growth acceleration, financial synergy upside, portfolio rationalization) and his “soft guide” looking out to FY18.

The analyst stated "At 15.4x EV/ULFCF (~30% disc. to staples), we see more ways to win with NWL than any stock in our coverage. 4Q core sales is unlikely to re-accelerate, though a better than expected “soft guide” on FY18 core sales growth (high-end of range likely ~5%) is comforting and not reflected in the stock".

However, the analyst is cutting FY16/17 estimates to $2.89/$3.05 to reflect the stronger USD, a slightly later close on the sale of Tools, and adjusted org sales numbers.

For an analyst ratings summary and ratings history on Newell Rubbermaid click here. For more ratings news on Newell Rubbermaid click here.

Shares of Newell Rubbermaid closed at $45.68 yesterday.

You May Also Be Interested In

• Incyte (INCY) PT Lowered to $84 at Oppenheimer
• Globe Life (GL) PT Lowered to $80 at Truist Securities
• Cantor Fitzgerald Starts Materialise NV (MTLS) at Overweight, 'Well-Positioned to meet rising software demand'