Newell Rubbermaid downgraded to "market perform" - update

02/12/07 - Barrington Research

NEW YORK, February 12 (newratings.com) - Analyst Derek W Leckow of Barrington Research downgrades Newell Rubbermaid Inc (NWL) from "outperform" to "market perform." The 12-month target price is set to $34.

In a research note published on February 9, the analyst mentions that the company has reported 8.5% net sales growth and 17.5% EPS growth for FY06. Newell Rubbermaid’s gross margins in FY06 expanded by 260bps, boosted by robust productivity, pricing and beneficial mix, the analyst says. The company has revised its EPS guidance for FY07 to $1.69-$1.75, representing a 7%-10% y/y decline. The company’s share price has appreciated by 26% in the last 12 months, Barrington Research adds.