Why Newell Brands Stock Raced More Than 5% Higher Today

Yahoo Finance ·

Volatile stock Newell Brands (NASDAQ: NWL), the company with a portfolio of familiar household brands such as Rubbermaid, kitchen gear, and Sharpie pens, saw an encouraging rebound in Thursday's trading. Bolstered by not one, but two analyst price target raises, investors eagerly bought the stock, and it closed the day over 5% higher. Of the two increases, the one made by Andrea Teixeira of JPMorgan Chase 's J.P. Morgan was the more impactful. She cranked her Newell fair value assessement 40% higher, to $7 per share from the previous $5. In doing so, the analyst maintained her overweight (buy, in other words) recommendation on the consumer goods conglomerate. A more cautious raise was made by UBS ' Peter Grom in his latest Newell update. The pundit now believes the stock is worth $4.75 per share, up from his previous estimate of $4.25. Unlike Teixeira, he isn't necessarily positive on the company, as he kept his neutral recommendation intact. Both moves came less than two weeks before Newell is slated to publish its second-quarter results. On average, according to data compiled by Yahoo! Finance, pundits tracking Newell stock are modeling $1.97 billion for revenue, which would be 2% higher year over year. While they're expecting a net profit of $0.19 per share, that's down from $0.24 a year ago.

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Newell Brands stock rose by over 5% as two analysts raised their price targets, prompting investors to buy the shares, leading to a closing price increase of over 5%. The analysts had raised their price targets the day before Newell Brands' 2Q results were released.

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