NWL: Cost Reductions And Restructuring Will Support Stabilization Despite Industry Challenges

Analysts have revised Newell Brands' price target lower by as much as $1.00, citing ongoing topline challenges and a difficult operating environment despite restructuring efforts and selective areas of progress.

Analyst Commentary

Recent Street research on Newell Brands reveals a split between analysts who remain optimistic on certain aspects of the business and those who highlight ongoing challenges impacting the stock’s valuation and growth potential.

• Bullish analysts cite recent updates to financial models, with price targets modestly increased in response to early signs of progress in productivity and restructuring efforts.
• There is measured optimism regarding the company’s beverage, home, and personal care segments, which are seen as areas of relative strength compared to other groups.
• Some analysts highlight the company’s focus on operational improvements and selective market segments, expecting these measures to support gradual stabilization in the business.
• Improved forecasts and upward price target revisions, though moderate, reflect a belief that Newell Brands can capitalize on sector opportunities with continued execution.

• Bearish analysts have lowered price targets due to persistent topline declines, emphasizing that these pressures continue to overshadow restructuring benefits.
• The current operating environment remains difficult, with analysts expressing concern about weak consumer demand and heightened price sensitivity across core product categories.
• Sentiment is tempered by forecasts for another challenging quarter, particularly in the small cap household and personal care groups.
• Continued value-seeking behavior among consumers poses a risk to sales growth, with the pace of recovery remaining uncertain in the near term.

What's in the News

• Sharpie reduced costs by moving most of its manufacturing to the U.S., maintaining its workforce and holding prices steady. This shift resulted in cheaper and faster production and helped the company avoid tariff impacts (Wall Street Journal).
• Newell Brands opened a new 12,000-square-foot Customer Experience Center in Hoboken, New Jersey, which offers retail partners immersive product showcases and strategic planning spaces.
• The company released updated financial guidance for 2025, projecting a net sales decline of 5.0% to 4.5% and normalized EPS in the range of $0.56 to $0.60.
• Sharpie relaunched its Extra Fine Permanent Marker as a Walmart-exclusive product in response to strong consumer demand, featuring the original barrel design and classic color lineup.

Valuation Changes

• Revenue Growth has decreased slightly, moving from 1.29% to 1.26%.
• Net Profit Margin has risen marginally, from 5.87% to 5.87%.
• Future P/E remains unchanged at approximately 7.13x.
• Discount Rate stays steady at 12.5%.
• Fair Value calculation is unchanged at $5.18.