Newell Brands Upgraded To 'Overweight' By JPMorgan On Sharper Product Focus, Lower Headcount

The investment bank also noted that the company, which primarily manufactures in the US, is largely insulated from tariff headwinds.

JPMorgan has upgraded its rating on Newell Brands (NWL) to 'Overweight' from 'Neutral,' citing business improvement.

The investment bank raised its price target by $1 to $7, signaling an upside of 33% from the present levels.

According to a summary of the investor note on The Fly, JPMorgan said the company's relevant innovations, distribution gains in key retailers, and potential for market share improvement are driving confidence in the business and its stock.

Newell is a consumer goods company that manufactures and sells household, kitchenware, baby care, and outdoor products. 

After years of sluggishness in the business, the company regained its footing by reducing its employee count and narrowing its product lines to focus on top-selling items.

The company reduced headcount by 20% and rationalized stock-keeping units (SKUs) by about 80% between 2022 and 2024, it said in a corporate update in April.

Newell is "finally on the right track to deliver on the turnaround," the investment bank said.

A more focused portfolio, efficient systems, and logistics should set the company as a winner in its categories, it added.

Furthermore, Newell's 15 manufacturing facilities in the US and two in Mexico (compliant with the United States-Mexico-Canada Agreement) make it largely insulated from headwinds from US tariffs compared to its competitors.

On Stocktwits, the retail sentiment for Newell shited to 'extremely bullish' from 'bullish' the previous day.

NWL shares are down 47.6% year-to-date.

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