As we anticipated, Turnaround Letter Buy-rated Newell Brands (NYSE: NWL) announced that its CEO and President, Michael Polk, will be retiring, with his departure occurring at the end of June. The board has not selected a replacement. Polk has been in the roles since 2011 and oversaw the highly unsuccessful Jarden acquisition.
Polk’s departure removes a major hurdle for Newell’s turnaround. Now, the newly-reconstituted board of directors, overseen by respected activist investor Carl Icahn*, along with its largely new management team, is essentially unconstrained in executing its turnaround.
With the shares trading at long-time lows, the Newell story looks particularly appealing.
NWL shares remain BUY-rated with a $39 price target.
We continue to rate the shares of Newell Brands (NWL) a BUY with a $39 price target.
*A prior note incorrectly stated that activist investor Starboard Value is leading the turnaround. Starboard Value is no longer involved with Newell Brands.
Disclosure Note: An employee of the Publisher owns NWL shares