BMO Capital Markets reported on Wednesday that they have raised
estimates for storage product producer, Newell Rubbermaid Inc.(
The firm has maintained its "Outperform" rating on NWL, and have
increased its price target from $24 to $26. This price target
suggests a 15% increase from the stock's current price of
An analyst from the firm commented, "positive. NWL is a GARP
investment. Guidance and results have been consistent for the last
year, and we expect the outlook to be conservative. No changes to
our estimates of $1.70 in 2012, $1.87 in 2013, and $2.10 in 2014.
We established a 2015 estimate of $2.35. We raised our price target
to $26 (from $24) based on the assumption NWL trades at 13.5x our
2013 estimate of $1.87, near its 10-year average of 13x. Maintain
Newell Rubbermaid shares were mostly flat during premarket
trading Wednesday. The stock is up 35% YTD.
The Bottom Line
Shares of Newell Rubbermaid (
) have a 2.74% dividend yield, based on last night's closing stock
price of $21.92. The stock has technical support in the $19 price
area. If the shares can firm up, we see overhead resistance around
the $25 price level.
Newell Rubbermaid Inc.(
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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