Newell Brands (NWL) reported "decent" Q4 results but Friday selloff in the stock following the report was a "head scratcher," RBC Capital Markets said in a note Monday.
"NWL reported decent (but not perfect) Q4 results that yielded
2H sequential improvement with further margin expansion and modest bottom-line upside," RBC analysts, including Nik Modi and Chris Peters, said.
"Guidance left something to be desired and is under threat of moving lower due to tariffs, but we struggle to see how the severe stock reaction Friday is warranted."
RBC kept its sector perform rating while lowering its price target to $9 from $9.50, citing softer outlook and tariff uncertainty.
"We continue to see NWL moving in the right direction despite external headwinds," the analysts said. "Importantly, we received confirmation that core sales growth should inflect positively later this year."
Price: 6.86, Change: -0.27, Percent Change: -3.86
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