Spectrum Brands initiated with a Peer Perform at Wolfe Research

Wolfe Research analyst Michael O’Brien initiated coverage of Spectrum Brands with a Peer Perform rating and no price target. The supplier of consumer home, pet, and garden goods’ valuation is "entirely dependent" on the "binary outcome" of the upcoming trial against the DOJ, the analyst tells investors. If successful against the DOJ antitrust challenge and the deal closes, Spectrum will receive $3.5B in cash, net of taxes, from the sale of its Hardware & Home Improvement, or HHI, business to Assa Abloy and will go from 5-times plus net levered to a net cash position, the analyst explains.