Update shared on04 Aug 2025
Fair value Decreased 5.60%Analysts have lowered Newell Brands’ price target from $7.23 to $6.83, reflecting ongoing concerns about inconsistent growth and high leverage despite modest improvements in execution, foreign exchange benefits, and a cautiously positive industry outlook.
Analyst Commentary
- Newell has stabilized at a high single digit price-to-earnings multiple in recent years due to ongoing struggles with consistent revenue and earnings growth, as well as high leverage.
- Bullish analysts are encouraged by recent company commentary indicating Newell is on track to meet current guidance.
- Foreign exchange movements have improved, providing an incremental positive impact on earnings per share.
- Aggregate industry model updates reflect a cautious but incrementally positive outlook for the sector, benefiting Newell’s near-term prospects.
- Price targets are updated to reflect modest improvements in near-term execution and macroeconomic factors, rather than a significant shift in long-term growth trajectory.
What's in the News
- Newell Brands issued Q3 guidance expecting net sales and core sales to decline 2%-4%; full-year 2025 outlook forecasts a 2%-3% decrease in both net and core sales.
- The company entered a strategic partnership with Adobe to leverage generative AI tools (Adobe Firefly, Express) to streamline and scale marketing content creation, boost productivity, and accelerate time-to-market.
- J.P. Morgan Securities was appointed lead underwriter for Newell Brands’ $1.25 billion fixed-income offering.
Valuation Changes
Summary of Valuation Changes for Newell Brands
- The Consensus Analyst Price Target has fallen from $7.23 to $6.83.
- The Consensus Revenue Growth forecasts for Newell Brands has significantly risen from 0.4% per annum to 1.0% per annum.
- The Net Profit Margin for Newell Brands has fallen from 6.78% to 6.32%.
Disclaimer
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