UBS maintains Neutral rating on Reynolds Consumer, lowers PT to $23.

UBS maintains Neutral rating on Reynolds Consumer, lowers PT to $23.

UBS Group has maintained a Neutral rating on Reynolds Consumer Products (NASDAQ:REYN) while lowering its price target to $23. This adjustment follows a series of recent changes in analyst ratings and price objectives for the company. UBS's latest report, released on July 2, 2025, reflects a cautious stance on the stock, indicating potential downward pressure on the stock price [1].

The move by UBS aligns with a broader trend among analysts. In recent weeks, several other brokerages have revised their ratings and price targets for Reynolds Consumer Products. For instance, Barclays lowered its price target to $21.00, Wall Street Zen upgraded the stock to a Hold rating, and Royal Bank of Canada set a $30.00 price objective [1]. These changes suggest a general sentiment of cautious optimism among analysts, with a consensus rating of Hold and an average price target of $27.89 [1].

Reynolds Consumer Products, a manufacturer of aluminum foil and other consumer products, has seen its stock price fluctuate. The stock traded at $21.49 on Tuesday, July 15, 2025, after a midday drop of $0.28, reaching its 52-week low of $20.91 [1]. Despite the recent downward pressure, the company's financial performance remains stable, with a net margin of 9.11% and a return on equity of 16.87% for the quarter ending April 30, 2025 [1]. The company reported earnings per share of $0.23, meeting analyst estimates [1].

Institutional investors have shown interest in Reynolds Consumer Products, with several firms increasing their holdings in the stock. For example, GAMMA Investing LLC raised its holdings by 231.8% in the second quarter, and Quarry LP increased its holdings by 187.0% in the fourth quarter [1]. These increases suggest a positive outlook from institutional investors, despite the neutral rating from UBS.

The company's insiders have also been active in their stock purchases. CAO Chris Mayrhofer bought 18,218 shares on May 29, 2025, and Director Rolf Stangl bought 4,500 shares on June 20, 2025 [1]. These purchases indicate confidence in the company's future prospects.

In conclusion, UBS's Neutral rating and lowered price target reflect a cautious stance on Reynolds Consumer Products. However, the company's stable financial performance and increasing institutional interest may provide a buffer against potential downward pressure on the stock price. Investors should carefully consider the latest analyst reports and the company's financial performance before making investment decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/barclays-has-lowered-expectations-for-reynolds-consumer-products-nasdaqreyn-stock-price-2025-07-15/