Citigroup raises Newell's PT to $6, maintains Neutral rating.

Citigroup raises Newell's PT to $6, maintains Neutral rating.

Citigroup has recently updated its price target for Newell Brands Inc. (NWL) to $6, while maintaining a Neutral rating. This move follows a period of significant margin expansion and cost-saving initiatives demonstrated by Newell. The investment research firm's analysts noted that the company's normalized gross margin rose 80 basis points year over year to 35.6% in the second quarter of 2025, and the normalized operating margin expanded 10 basis points to 10.7% Can Newell's Cost-Saving Drive Sustain Its Margin Expansion Momentum?^[1].

Newell has committed to doubling its evergreen margin-expansion target, aiming for an 110-basis-point operating margin gain in 2025 compared to 2024. The company has invested nearly $2 billion in its North American production system since 2017, enhancing automation and securing tariff-advantaged manufacturing capacity. This strategic investment, coupled with price adjustments and productivity programs, is expected to offset $155 million of gross tariff costs in 2025 Can Newell's Cost-Saving Drive Sustain Its Margin Expansion Momentum?^[1].

Looking ahead, Newell projects normalized operating margins of 9% to 9.5% for full-year 2025, alongside normalized EPS guidance of 66-70 cents. The company anticipates sequential top-line improvement in the second half of 2025, supported by distribution gains and innovation launches. Despite continued consumer demand headwinds, Newell's consistent execution of cost-saving initiatives suggests margin expansion can remain on track, positioning the company for stronger earnings power once category growth improves Can Newell's Cost-Saving Drive Sustain Its Margin Expansion Momentum?^[1].

Shares of Newell Brands Inc. have gained 11.8% over the past three months, outperforming both the industry and the broader Consumer Staples sector, which declined 4.6% and 4.2%, respectively. The stock also outperformed the S&P 500, which gained 9.5% during the same period Can Newell's Cost-Saving Drive Sustain Its Margin Expansion Momentum?^[1].

Despite these positive developments, Newell's stock has underperformed compared to some of its competitors. For instance, Procter & Gamble Co. (PG) fell 0.68% to $156.83, Clorox Co. (CLX) fell 0.56% to $122.82, and Avery Dennison Corp. (AVY) fell 0.48% to $164.85 on Monday, September 10, 2025 Newell Brands Inc. stock underperforms Monday when compared to competitors^[2].

Citigroup's updated price target reflects the company's ability to navigate challenging market conditions and execute on its cost-saving initiatives. However, the Neutral rating suggests a cautious outlook on potential growth opportunities and market risks.