Newell's stock surges after Wells Fargo turns bullish on valuation

Shares of Newell Brands Inc. ran up 2.9% in premarket trade Tuesday, after Wells Fargo turned bullish on the consumer products company for the first time in a year, which said the current valuation is not reflective of the company's underlying value. The stock had tumbled 15% year to date through Monday and closed at a five-year low as recently as April 2. That compares with a 0.2% gain in the S&P 500 this year. Analyst Bonnie Herzog raised her rating on Newell to outperform, after being at neutral since April 30, 2017, and lifted her stock price target to $33 from $25. "Overall, our upgrade is more of an event-driven break-up call vs. a fundamental improvement call," Herzog wrote in a note to clients. "We believe [Newell's] individual businesses are very undervalued at the current price, and the pending divestitures will unlock significant value, which we believe will result in a re-rating of [Newell] shares."

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