Newell Brands (NYSE:NWL) was downgraded by two Wall Street analysts today. The analysts’ actions were in response to the company’s decision to cut its yearly sales forecast last Friday.
One of the key reasons prompting JPMorgan analysts to shift their Newell Brands rating from Overweight to Neutral was this adjusted outlook. They also reduced her price target from $11 to $7 per share. The analysts commented that after witnessing three consecutive reductions in guidance, largely due to diminished category demand expected to persist for an extended period (12-18 months), it seemed wise to adopt a more cautious stance.
The analysts further expressed disappointment with the Q3 earnings report and felt that the earnings call failed to inspire confidence in the company’s ability to address its challenges in the near to medium future.
Analysts from Truist, also downgraded their rating from Buy to Hold and set a price target of $8 per share. In their note, the analysts pointed out that post-pandemic fluctuations, especially in home categories that soared during the pandemic but are now on a decline, have adversely affected multiple consumer goods companies in 2023.