Canaccord Genuity Upgrades Spectrum Brands (SPB) to Buy

Canaccord Genuity analyst Brian McNamara upgraded Spectrum Brands (NYSE: SPB) from Hold to Buy with a price target of $102.00 (from $94.00).

The analyst comments: "SPB reported mixed Q1 2025 results with sales broadly in line, with a big beat in H&G and sizable miss in GPC, and adjusted EPS and EBITDA beating consensus by 11% and 16%, respectively. The company also reaffirmed its guidance. While the quarter and guide were nothing to write home about, they also weren't the disaster that the stock’s recent performance suggests (-20% vs. Russell 2000 -3% over the last two months). Almost a year ago today we downgraded the stock, believing the company would need to demonstrate meaningful and consistent top line growth for the multiple to expand further. Since then, organic sales have increased by an average of 3%, which is plenty good at a 7x consensus 2025E EV/EBITDA multiple, and our 2025E adjusted EBITDA and EPS estimates have increased +15% and +44%, respectively — the latter of which is juiced by significant share buyback activity. While we acknowledge its HPC business will be most impacted by recently announced tariffs, we don’t think delaying the HPC separation/sale is a bad thing, as SharkNinja (SN : $114.12 | BUY, $129 PT) is raising the bar for innovation in the space and peers like Newell Brands (NWL : $9.69 | BUY, $15 PT) and SPB are following suit, which we believe could make the space much less commoditized, commanding higher multiples."

For an analyst ratings summary and ratings history on Spectrum Brands click here. For more ratings news on Spectrum Brands click here.

Shares of Spectrum Brands closed at $76.46 yesterday.

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