UBS Group Initiates Coverage on Spectrum Brands (NYSE:SPB)

Key Points

• UBS Group initiated coverage of Spectrum Brands with a “buy” rating and a $97 price target, implying approximately 22.6% upside from the prior close.
• Analyst sentiment is generally positive: Spectrum Brands has a consensus “Moderate Buy” rating and an average price target of $97.86, based on four Buy and four Hold ratings.
• The company’s latest quarter exceeded expectations, with earnings of $2.79 per share versus a $1.46 estimate and revenue of $753.3 million, up 7.7% year over year.

UBS Group assumed coverage on shares of Spectrum Brands (NYSE:SPB - Get Free Report) in a report released on Thursday. The firm set a "buy" rating and a $97.00 price target on the stock. UBS Group's price objective would indicate a potential upside of 22.62% from the stock's previous close.

A number of other equities analysts have also commented on the company. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $96.00 price objective on shares of Spectrum Brands in a research note on Monday, August 10th. Royal Bank Of Canada lowered Spectrum Brands from an "outperform" rating to a "sector perform" rating and raised their target price for the company from $85.00 to $92.00 in a report on Monday, August 10th. Wall Street Zen raised Spectrum Brands from a "hold" rating to a "buy" rating in a research report on Saturday, September 5th. Canaccord Genuity Group upped their price target on Spectrum Brands from $99.00 to $110.00 and gave the stock a "buy" rating in a report on Monday, August 10th. Finally, Oppenheimer increased their price objective on Spectrum Brands from $85.00 to $100.00 and gave the company an "outperform" rating in a research report on Monday, August 10th. Four research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, Spectrum Brands has an average rating of "Moderate Buy" and a consensus price target of $97.86.

Spectrum Brands Stock Performance

NYSE:SPB traded up $1.93 during midday trading on Thursday, reaching $79.11. The stock had a trading volume of 7,354 shares, compared to its average volume of 357,876. Spectrum Brands has a 1-year low of $50.68 and a 1-year high of $99.06. The firm's fifty day simple moving average is $85.03 and its 200-day simple moving average is $83.30. The company has a debt-to-equity ratio of 0.33, a current ratio of 2.41 and a quick ratio of 1.61. The stock has a market capitalization of $1.82 billion, a P/E ratio of 24.11, a PEG ratio of 2.74 and a beta of 0.78.

Spectrum Brands (NYSE:SPB - Get Free Report) last released its earnings results on Friday, August 7th. The company reported $2.79 earnings per share for the quarter, topping analysts' consensus estimates of $1.46 by $1.33. Spectrum Brands had a net margin of 2.76% and a return on equity of 10.06%. The firm had revenue of $753.30 million during the quarter, compared to analyst estimates of $732.19 million. During the same quarter in the previous year, the business earned $1.24 EPS. The business's revenue was up 7.7% on a year-over-year basis. On average, equities research analysts forecast that Spectrum Brands will post 6.38 EPS for the current fiscal year.

Institutional Investors Weigh In On Spectrum Brands

Several hedge funds have recently made changes to their positions in the stock. Engineers Gate Manager LP bought a new stake in Spectrum Brands in the second quarter valued at about $1,949,000. Hsbc Holdings PLC lifted its stake in Spectrum Brands by 41.4% during the second quarter. Hsbc Holdings PLC now owns 61,157 shares of the company's stock worth $5,208,000 after purchasing an additional 17,900 shares during the period. Manning & Napier Advisors LLC bought a new position in Spectrum Brands during the second quarter worth about $26,496,000. Legal & General Group Plc acquired a new stake in Spectrum Brands during the second quarter valued at approximately $1,870,000. Finally, PEAK6 LLC acquired a new stake in Spectrum Brands during the second quarter valued at approximately $2,955,000.

About Spectrum Brands

Spectrum Brands Holdings, Inc is a global consumer products company headquartered in Middleton, Wisconsin. The company develops, markets and distributes branded products for use in homes, gardens and by pet owners, selling through mass retailers, e-commerce channels, specialty stores and other retail outlets in North America and international markets.

Spectrum Brands' portfolio has historically included home and personal care products under brands such as Remington, Russell Hobbs, George Foreman and Black+Decker, as well as pet care products marketed under brands including Tetra, FURminator, Nature's Miracle and 8-in-1.

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