Newell Rubbermaid (NWL) PT Lowered to $7.50 at Citi

Citi analyst Filippo Falorni lowered the price target on Newell Rubbermaid (NASDAQ: NWL) to $7.50 (from $9.00) while maintaining a Neutral rating.

The analyst comments "NWL 4Q’23 results were better-than-expected with core sales -9.3% and EPS $0.22 beating consensus $0.17. However, the stock was down a large -18% as 2024 guidance was weaker-than-anticipated calling for core sales (3-6%) and EPS (21.5-34.2%) Y/Y. While 2024 guidance is directionally consistent with the preliminary outlook, it came below sell-side and buy-side expectations. NWL’s 2024 guidance assumes category improvement to -LSD% (from -HSD% in 2023) with January coming in slightly better than NWL expected (a potential green shoot). However, we believe investors will continue to question the timeline for a topline inflection and a return to topline growth. Mgmt. expects sequential improvements in core sales following 1Q24 behind innovation/new distribution/stronger commercial capabilities, but with limited visibility into how this will evolve in a challenging macro environment, we prefer to stay on the sidelines with a Neutral rating despite undemanding valuation of CY24 P/E ~12x below its L10Y avg ~13x."

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