Newell Brands Inc (NASDAQ: NWL) is currently down more than 50% versus its year-to-date, but a JPMorgan analyst is convinced the consumer goods company is turning a corner, particularly as trade tensions and tariff risks once again loom over markets.
In her latest research note, Andrea Teixeira upgraded NWL shares to “overweight” and raised her price target to $7, which indicates potential upside of some 33% from current levels.
Teixeira cited the company’s strategic manufacturing footprint and improved operational focus as key reasons for her bullish view on Newell stock.
Newell stock is insulated from tariff uncertainty
According to JPM analyst Andrea Teixeira, Newell shares are uniquely positioned to benefit from tariff-related uncertainty as the Nasdaq listed firm has a strong US manufacturing footprint.
While many of its rivals, including private-label competitors, source heavily from overseas, NWL operates 15 plants in the United States and two additional Mexico-based facilities, which are also compliant with MCA standards.
“We think NWL is tariff advantaged,” Teixeira wrote, adding the company is “likely to benefit as it secures more retailer wins in its 19 tariff-advantaged categories.”
Newell’s relatively low exposure to China, mostly tied to baby gear, also plays in its favour.
These imports were previously exempt under Section 301 tariffs during the Trump administration, which may cushion the blow if similar trade measures are reintroduced.
Newell stock currently pays a lucrative dividend yield of 5.34%, which makes it even more exciting to own in 2025.
Turnaround success to benefit NWL shares
JPM’s upgrade also reflects growing confidence in Newell’s internal turnaround.
The investment bank noted recent conversations with senior management signalled a much more focused portfolio strategy, improved logistics and faster innovation cycles.
“We came away with more confidence that NWL is finally on the right track,” Teixeira wrote, referencing the company’s renewed focus on efficiency and execution.
Distribution gains with retail partners and product innovation momentum were also flagged as positive catalysts.
The report additionally pointed to the firm’s efforts in deleveraging its balance sheet and improving profit margins – two factors that could help support a rebound in earnings over the medium term.
Newell Brands is strongly positioned to gain market share
In late April, Newell reported its financial results for the first quarter that topped Street estimates.
All in all, JPMorgan expects companies with domestic production capabilities to hold a strategic advantage as tariff concerns resurface amid shifting geopolitical dynamics.
According to Andrea Teixeira, Newell stock is not just a defensive play against tariffs, but also a potential market share gainer if competitors face higher import costs.
With NWL shares trading at distressed levels at the time of writing, the investment bank believes the risk-reward profile now skews favorably.
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