Newell price target raised at Jefferies following 4Q results
Investing.com | Author Michael Elkins
Published Feb 14, 2023 02:14PM ET
Newell (NWL) price target raised at Jefferies following 4Q results
By Michael Elkins
Jefferies reiterated a Buy rating on Newell Brands (NASDAQ:NWL) and raised their price target on the stock to $20.00 (from $19.00) following the consumer goods company’s 4Q results. NWL reported 4Q core sales of -9.4% YoY (vs Street -10.6%). The beat was driven by Home Appliances, Home Solutions, and Learning & Development. NWL delivered an EPS of $0.16 compared with the consensus estimate of $0.11.
Analysts wrote in a note, “NWL's initial FY23 outlook calls for -6-8% core sales decline, though 2H should improve vs. easier YoY comps w/ retailer destocking front half weighted. NWL's guide contemplates: a) category normalization post COVID (notably Home /Outdoor), pressure on discretionary categories, retailer destocking, and greater demand elasticity to pricing. GM % is expected to increase YoY though OM % guided to flat to -50 bps YoY, w/ higher int expense / taxes, resultin in FY23 EPS of $0.95-$1.08 (vs. $1.93 in FY20).”
Jefferies lowered their FY23/24 EPS by 21%/14%, though they remain well ahead of the Street’s FY24/25 estimates.
Shares of NWL are up 0.9% in afternoon trading on Tuesday.
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