Analyst Peter Grom of UBS maintained a Hold rating on Reynolds Consumer Products, retaining the price target of $25.00.
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Peter Grom has given his Hold rating due to a combination of factors influencing Reynolds Consumer Products. The company’s earnings per share for the third quarter are expected to align with consensus estimates, and demand trends have remained stable. However, despite the company’s shares outperforming the consumer staples sector index since July, the valuation is slightly above historical averages, indicating that a solid quarter might already be factored into the current stock price.
Additionally, the company’s guidance for fiscal year 2025 is likely to remain unchanged, with expectations of a slight decline in net sales. While there has been some improvement in sales growth, the overall pressure on volumes persists. The current valuation and the need for a more attractive entry point or evidence of potential upside to estimates contribute to the Hold rating, as the stock may not offer significant upside potential at this time.
In another report released on October 13, Barclays also maintained a Hold rating on the stock with a $22.00 price target.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of REYN in relation to earlier this year.