Citigroup Raises Newell Brands Price Target to $6.00

Citigroup raised Newell Brands' price target to $6.00, a 20% increase from $5.00. The analyst maintained a 'Neutral' rating. The average target price from 10 analysts is $7.18, indicating a 32.47% upside from the current price of $5.42.

Citigroup has raised its price target for Newell Brands Inc. (NASDAQ:NWL) to $6.00, a 20% increase from its previous target of $5.00. The analyst maintained a 'Neutral' rating for the consumer goods company [1]. The move comes amidst a backdrop of resilience in Newell's stock performance, with a year-to-date (YTD) return of 9% and trading at $134.66, near its 52-week high of $135.95 [1].

Citi expects Newell to report a "soft quarter" for Q2 2025, with core sales declining by 2.9%, within the company's guidance range of -3% to -5% [1]. U.S. scanner data has shown sequential improvement compared to Q1 2025 but remains weak on a year-over-year basis, according to Citi's analysis [1]. The firm anticipates Newell will report earnings per share of $0.23 for the second quarter, compared to the company’s guidance range of $0.21-$0.24 [1].

The upgrade is attributed to continued gross margin expansion driven by productivity savings, two rounds of 10% pricing increases on Baby Gear during the quarter, and minimal headwinds from China tariffs [1]. Additionally, Newell Brands has priced a $1.25 billion senior unsecured notes offering with an 8.50% interest rate, set to mature in 2028, to redeem 4.200% senior notes due in 2026 and cover related fees and expenses [1]. The company also announced plans for a $1 billion notes offering due in 2028, with proceeds similarly aimed at redeeming the 2026 notes [1].

Analyst consensus for Newell Brands, based on 9 analysts, is "Hold," with an average price target of $7.83, indicating a 38.89% upside from the current price of $5.64 [2]. Other recent analyst moves include JPMorgan upgrading Newell Brands from 'Neutral' to 'Overweight' with a $7.00 price target, citing successful turnaround efforts and innovation speed [1]. UBS maintained its 'Neutral' rating with a $5.00 price target, noting confidence in long-term growth but remaining cautious due to uncertainties in category growth [1]. Canaccord Genuity continued its 'Buy' rating with an $11.00 price target, highlighting achievements in brand rationalization and supply chain improvements [1].

References:

[1] https://www.investing.com/news/analyst-ratings/citi-raises-newell-brands-stock-price-target-to-6-on-margin-expansion-93CH-4136161
[2] https://www.marketbeat.com/stocks/NASDAQ/NWL/forecast/