Reynolds Consumer Products upgraded to Neutral from Sell at Goldman Sachs

Goldman Sachs analyst Jason English upgraded Reynolds Consumer Products (REYN) to Neutral from Sell with a price target of $30, up from $28. The firm’s prior downgrade on concern that cost pressure would catalyze a negative estimate revision cycle has come to fruition through FY22 as supply chain issues compounded cost pressure, the analyst tells investors in a research note. 2023 is proving different with last quarter demonstrating that its supply chain issues are mended and easing input costs are aiding margin recovery, Goldman Sachs added. While spot input costs have been volatile of late, there is favorability ahead, with added likely sales benefits owing to newly emerged supply chain challenges at Clorox (CLX), the firm states.