23 January 2007 — New York (NY): Newell Rubbermaid’s price target has been raised by analysts on the back of a solid outlook for consumer products companies.
Constance Maneaty, analyst at Prudential Equity Group, attributes the strong positive outlook to moderating raw material costs, the weakening of the dollar, the amount of restructuring in the sector and falling fuel prices.
Maneaty said: "Oil has declined 34 percent, natural gas has fallen 50 percent, resins have decreased 30 percent and diesel is down 20 percent from their peaks in terms of price."
She added: "Lower costs should be reflected in what is bought outside existing contracts and our companies should be able to negotiate lower prices for their 2008 needs."
Newell Rubbermaid’s price target was increased by $2 to $35.