J.P. Morgan Downgrades Newell Rubbermaid
J.P. Morgan downgraded Newell Rubbermaid (NWL ) to market perform from long-term buy.
Analyst Amanda Tepper says while she still believes the CEO's turnaround strategy will ultimately succeed, after Wednesday's lower guidance she feels that the company's visibility on the timing of a turnaround has dropped to almost zero. Therefore, in the absence of any near-term catalysts to improve the share price, Tepper downgraded the shares.
She also cut the $1.49 2001 EPS estimate to $1.18, and says she believes the stock, which currently is trading at about 18.3 times her new 2001 estimate, is fairly valued at current levels.