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Newell Brands (NWL) Rockets 15% Higher Alongside Outlook; Analyst Hikes Price Target

Newell Brands (NASDAQ:NWL) soared 15.06 percent on Monday to close at $5.96, as investor sentiment improved on its higher growth outlook for full-year 2026.

Growth is now expected to be 2 to 3 percent, up from 1 to 2 percent previously, while core sales are projected to grow 1 to 2 percent, up from none to 1 percent previously.

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“Higher projected sales than previously anticipated and additional cost containment efforts give us the confidence to maintain the midpoints of our normalized operating margin and normalized earnings per share outlooks,” Newell Brands Chief Finance Officer Mark Erceg said.

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“Deleveraging remains a top priority and, consistent with that, we anticipate reducing total debt and factoring by a couple hundred million dollars this year,” he noted.

Normalized earnings per share guidance was narrowed to $0.74 to $0.76, with the upper end lowered from $0.77 to $0.76 and the lower end raised from $0.73 to $0.74.

Q3 Losses Despite Net Sales Jump

The higher sales growth guidance was encouraged by a 3.7 percent jump in net sales in the third quarter of the year to $1.873 billion from $1.806 billion in the same period last year, reflecting core sales growth of 3.3 percent and favorable foreign exchange.

“Top-line growth accelerated sequentially as Newell Brands delivered its second consecutive quarter of year-over-year growth in sales. Growth during the quarter was broad-based, with both the US and International delivering growth along with four of our six businesses and seven of our top 10 brands. Our investment in consumer understanding, brand building, innovation, and marketing continues to expand distribution and drive growth,” Newell Brands President and CEO Chris Peterson said.

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However, the company reported a $92 million loss before income taxes, resulting in a net loss of $81 million, compared with net income of $21 million in the same period last year.

Higher Price Target

Investment firm UBS modestly raised its price target for the stock to $5.75 from $5.50 previously, following Newell Brands’ earnings results.

However, it reiterated its neutral stance, saying that the top-line results were encouraging but investors will need greater conviction that its growth strategy outlined for next year is achievable.

Apart from UBS, Citigroup also maintained a neutral stance on the company, although it lowered its price target to $5.50 from $6.

Strong Hedge Fund Positioning

Newell Brands holds a strong backing from its existing institutional investors, as evidenced by the larger committed capital poured into its stock.

Data from Insider Monkey showed that combined hedge fund holdings in the second quarter of the year increased by 73 percent to $708 million from $409.8 million, even as the number of institutional investors decreased to 33 from 35 in the first quarter of the year.

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