Update shared on 02 Nov 2025
Fair value Decreased 5.86%Analysts have modestly adjusted Newell Brands' fair value price target downward, from $6.83 to $6.43. They cited persistent category challenges and evolving consumer spending patterns in their recent updates.
Analyst Commentary
Analyst updates for Newell Brands reflect a mix of caution and optimism as firms reassess their price targets and strategic outlooks for the company. Recent research notes highlight factors contributing to both upside and downside scenarios for Newell Brands and its valuation moving forward.
Bullish Takeaways- Bullish analysts recognize incremental improvements in certain segments, leading to modest price target increases amid challenging conditions.
- Adjustments in beverage and home and personal care group models indicate some resilience, particularly as consumer preferences evolve within non-alcoholic beverage categories.
- Despite industry turbulence, the company has managed to secure Neutral or Overweight ratings. This reflects confidence in its longer-term potential to navigate the current environment.
- Optimists highlight the company’s ability to reposition within its sectors. Effective execution could support gradual recovery in valuations.
- Bearish analysts point out the tough operating backdrop, as ongoing value-driven consumer behavior challenges the company’s growth areas.
- The third quarter is anticipated to remain difficult for the household, personal care and beauty segments, which may limit near-term earnings upside.
- Market headwinds in personal care and beverage alcohol continue to weigh on growth prospects and may pressure margins.
- Recent downward revisions to price targets underscore the uncertainty tied to category challenges and fluctuating consumer demand.
What's in the News
- Newell shifted production of Sharpie markers from overseas to the U.S., cutting costs and boosting efficiency without layoffs or price hikes. The company is now benefiting as tariffs impact the industry (The Wall Street Journal).
- The company has issued financial guidance for Q4 2025 and the full year 2025, anticipating a net sales decline of 4.0% to 1.0% in Q4 and 5.0% to 4.5% for the year, with expected normalized EPS of $0.16 to $0.20 for Q4 and $0.56 to $0.60 for the year.
- Sharpie is bringing back the Extra Fine Permanent Marker in response to years of fan demand. The marker returns exclusively to Walmart with its retro barrel design and is available in four colors.
Valuation Changes
- Consensus Analyst Price Target: The fair value estimate declined modestly from $6.83 to $6.43, reflecting revised expectations.
- Discount Rate: Remained unchanged at 12.32%, which indicates a stable risk assessment by analysts.
- Revenue Growth: Projected revenue growth increased from approximately 1.05% to 1.74%. This suggests an improved sales outlook.
- Net Profit Margin: Expected net profit margin rose slightly from 6.32% to 6.90%. This indicates greater anticipated profitability.
- Future P/E: The forward price-to-earnings ratio declined from 8.58x to 7.39x. This points to more conservative valuation assumptions.
Disclaimer
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