Latest news with #AndreaTeixeira
CNBC
2 days ago
- Business
- CNBC
JPMorgan upgrades Newell Brands to overweight thanks to tariff-hedging abilities
Newell Brands ' tariff-hedging advantages gives it a leg up over its peers, according to JPMorgan. The bank upgraded shares of the consumer and commercial goods manufacturer to an overweight rating from neutral. Simultaneously, analyst Andrea Teixeira raised her price target to $7 per share from $6. Newell, which owns brands such as Rubbermaid, Paper Mate, Sharpie, Elmer's, Yankee Candle and Crock-Pot, has stumbled 45% so far this year. However, Teixeira's revised forecast implies an upside of 29% from the stock's Thursday closing price of $5.43. NWL YTD mountain NWL YTD chart One reason for the upgrade comes from a recent meeting with several members of Newell's senior management. "We came away more confident that NWL is finally on the right track to deliver on the turnaround with a more focused portfolio, efficient systems and logistics that should set NWL as a winner in its categories, in particular as the company is a tariff beneficiary with most of its manufacturing in the U.S. vs. abroad for most competitors, including private label," Teixeira wrote. As additional catalysts, the analyst pointed to Newell's increased speed of recent innovation, alongside its distribution gains in key retailers. She added that Newell is also in a good position to hedge tariff risks, and could even gain more market share since most of its peer companies source from abroad. "We think NWL is tariff advantaged with its 15 U.S. plants and two U.S. MCA-compliant plants in Mexico, and is likely to benefit as the company secures more retailer wins in its 19 tariff-advantaged categories, which in turn would aid the top line and in turn gain market share," she wrote. "As it relates to tariff risk for NWL, majority of 15% China sourcing is due to baby gear but this is an industry-wide issue and was exempt under Section 301 during Trump 1.0." Additional tailwinds for Newell Brands include financial deleverage and continuing margin improvement.
CBC
17-03-2025
- Business
- CBC
PepsiCo to buy prebiotic soda brand Poppi, expanding into the healthier soda category
Social Sharing PepsiCo said Monday it will buy prebiotic soda brand Poppi for $1.95 billion US, expanding into the "healthier soda" category at a time when the company is battling falling demand for its traditional beverages and snacks. Young Americans are increasingly turning to healthier sodas and energy drinks as part of a broader shift to fitness and lifestyle products, with rival Coca-Cola expanding its Simply brand to launch a prebiotic soda called "Simply Pop." Competitors such as Celsius Holdings and Keurig Dr Pepper have also targeted the market by snapping up smaller energy and wellness drink-makers. The Poppi deal boosts PepsiCo's presence in the healthy drinks category at a time when multiple price hikes weigh on demand for its sodas and Lay's snacks, pushing the company to forecast weak annual profit. Prebiotic sodas have become a top-growing category in the U.S. within the carbonated drinks segment (CSD), powered by a shift in preference to more gut health-focused drinks. The deal helps in "establishing a foothold in the fast-growing 'modern' soda segment and shoring up a CSD portfolio that has been losing share for years to Coca-Cola and Keurig Dr Pepper," J.P. Morgan analyst Andrea Teixeira said. Poppi combines prebiotics, fruit juice and apple cider vinegar to create a low-calorie soda with no more than five grams of sugar per serving, PepsiCo said. The Texas-based company's retail sales jumped 122 per cent, year-over-year, in the 12 weeks through Feb. 22 and now holds about a one per cent share of the total carbonated soft drinks category, according to BNP Paribas. Poppi, founded by Stephen and Allison Ellsworth, was initially known as Mother and rebranded in 2020. The founders appeared on Shark Tank in 2018, and had gained the backing of investor and co-founder of CAVU Consumer Partners Rohan Oza. The deal with Poppi includes $300 million US of anticipated cash tax benefits for a net purchase price of $1.65 billion US, PepsiCo said, without disclosing additional terms of the deal.
