Wells Fargo Keeps Their Hold Rating on Spectrum Brands Holdings (SPB)

By Jason Carr

In a report released today, Sam Reid from Wells Fargo maintained a Hold rating on Spectrum Brands Holdings (SPBResearch Report), with a price target of $50. The company’s shares opened today at $48.05, close to its 52-week low of $45.88.

Reid said:

“We lower our FY19/FY20 EBITDA ests. by $51MM/$72MM to $563MM/$568MM & our price target by $20 to $50 (implying a ~7-8x pro-forma multiple) to reflect what we believe is a much more challenged fundamental backdrop than even our prior conservative ests. contemplated. In short, we weren’t surprised shares were meaningfully off today (-19% vs. the S&P500 -2%) and don’t see today’s weakness as a buying opportunity. We remain cautious given our ongoing concerns about SPB’s execution & biz cyclicality.”

According to TipRanks.com, Reid is ranked #4641 out of 4897 analysts.

Currently, the analyst consensus on Spectrum Brands Holdings is a Moderate Buy with an average price target of $82.67, implying a 72.0% upside from current levels. In a report released today, Oppenheimer also downgraded the stock to Hold.


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Spectrum Brands Holdings’ market cap is currently $511.1M and has a P/E ratio of 0.57. The company has a Price to Book ratio of 0.39.

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Spectrum Brands Holdings, Inc. engages in the manufacture of diversified consumer products. It produces consumer batteries; residential locksets; residential builders’ hardware; plumbing, shaving, and grooming products; personal care products; small household appliances; specialty pet supplies; lawn and garden and home pest control products; personal insect repellents; and auto care products. The firm offers a portfolio of brands including Rayovac, VARTA, Kwikset, Weiser, Baldwin, National Hardware, Pfister, Remington, George Foreman, Black + Decker, Tetra, Marineland, Nature’s Miracle, Dingo, 8-in-1, FURminator, IAMS and Eukanuba, Healthy-Hide, Digest-eeze, Littermaid, Spectracide, Cutter, Repel, Hot Shot, Black Flag, Liquid Fence, Armor All, STP, and A/C PRO. The company was founded on July 13, 2018 and is headquartered in Middleton, WI.