Newell Rubbermaid (NWL): Reiterate Top Pick - Jefferies

September 14, 2016 7:56 AM EDT
Get Alerts NWL Hot Sheet
Price: $46.08 +0.24%

Rating Summary:
    15 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Jefferies analyst, Kevin Grundy, reiterated his Buy rating on shares of Newell Rubbermaid (NYSE: NWL) and sees a path for the brand to double to ~$2B in sales over the next 6-7 years (> 10% CAGR), driving a ~50 bps upward revision to Street sales est. A shift to local production in Prague for YC is also an under-appreciated OM % driver.

Our regional market analysis suggests Yankee Candle can double by FY22, including ~70% coming from NA, where NWL seems keenly focused. Brand extensions into adjacent categories are supportive of our f-cast, including a ~100 bps p.a. contribution to YC's org sales growth from air fresheners with early shelf space wins at WMT. The bull case suggests a 350 basis point expansion opportunity.

No change to above consensus FY17-18 estimates or the $66 PT.

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 $49.67 yesterday.

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