Citi Pivots to Household Care for 2026 Favoring Newell Brands (NWL) as Inventory Destocking and Negative Comparisons End

Group 1 - Newell Brands Inc. has been identified as a low-cost investment option, with Citi raising its price target to $3.75 from $3.50 while maintaining a Neutral rating [1] - UBS has lowered its price target for Newell Brands to $4 from $5.50, also keeping a Neutral rating, indicating a cautious approach until market conditions improve [2] - In Q3 2025, Newell Brands reported net sales of $1.8 billion, a 7.2% decline year-over-year, with core sales down 7.4%, attributed to retailer inventory destocking and pricing challenges [3] - Despite the sales decline, Newell Brands achieved a net income of $21 million, a significant improvement from a net loss of $198 million in the previous year, with normalized diluted EPS of $0.17 [3] - The company is planning for growth in 2026, supported by over 20 new product innovations and a global productivity plan that includes a 10% workforce reduction to save up to $130 million annually [3] - For the full year 2025, Newell Brands anticipates a net sales decline of 4.5% to 5%, with normalized EPS projected between $0.56 and $0.60 [3] Group 2 - Newell Brands operates in three segments: Home & Commercial Solutions, Learning & Development, and Outdoor & Recreation, focusing on consumer and commercial products globally [4]