SunTrust recommends investors buy shares of Newell Brands, acknowledging weak performance in the first half but highlighting its "highly attractive" valuation.
"We believe now is the time to buy NWL shares with a highly attractive valuation and multiple catalysts on the horizon," wrote SunTrust analyst William Chappell Jr. "We are now in the 'prove it' stage and believe that organic growth will meet, if not exceed, expectations."
"Additionally, we believe the company's valuation has been held back by the high relative leverage ratio, but that NWL's high cash flow generation from September-December will mute that issue."
Newell Brands produces, markets and sells a number of consumer and commercial products through brands such as Paper Mate, Sharpie, Elmer's and Rubbermaid. After its acquisition of Jarden in April 2016, Newell Brands added both Yankee Candle and Jostens to its roster.