Canaccord Genuity increased its price objective for Spectrum Brands (NYSE: SPB) to $94.00 from $84.00 and retained a Buy rating following the company's fiscal first-quarter results. The new target aligns closely with InvestingPro's Fair Value assessment and arrives after the stock rallied roughly 18.4% over the previous week.
Spectrum Brands posted quarterly results that outpaced analyst expectations across several measures. Reported sales were about 1% ahead of consensus, adjusted EBITDA ran roughly 8% above forecasts, and adjusted earnings per share substantially exceeded estimates. On a trailing-twelve-month basis the company reported $2.79 billion in revenue and $4.23 in diluted EPS.
The quarter's performance varied by business unit. Global Pet Care delivered the most notable upside - performing about 4% above consensus as companion animal brands outperformed the broader market. Home and Personal Care finished approximately 1% above expectations. Home & Garden lagged, coming in about 6% below consensus.
Management said margins experienced headwinds from several operational pressures - lower volumes, higher trade spending and increased tariff costs. Those detractors were partially offset by pricing actions, targeted cost improvements, operational efficiencies and favorable foreign exchange movements. The company reported a gross profit margin of 36.46% for the period.
Spectrum Brands confirmed its fiscal 2026 guidance. The guidance assumes ongoing consumer pressures but anticipates growth in both the Global Pet Care and Home & Garden segments, with Home & Garden's improvement expected to be weighted toward the second half of the fiscal year.
Separately, the company disclosed specific fiscal first-quarter metrics: earnings per share of $1.40, which outpaced a projected $0.76 and represented an 84.21% surprise. Quarterly revenue reached $677 million, ahead of Oppenheimer's $674 million estimate and above a Wall Street consensus of $668 million. Reported EBITDA for the quarter was $63 million, which the company said was within the range of analyst expectations.
In response to the quarterly beat, Oppenheimer raised its own price target for Spectrum Brands to $85 while maintaining an Outperform rating. Market participants appear to be recalibrating valuations in light of the stronger-than-expected top-line and earnings performance.
Taken together, the analyst actions and the company's maintained guidance reflect a combination of near-term operational pressure and stronger execution in key categories. Investors and industry observers will likely watch volume trends, trade spend, tariff exposure and the timing of Home & Garden recovery as the company moves through fiscal 2026.
Key points
- Canaccord raises Spectrum Brands' price target to $94 and keeps a Buy rating following Q1 results that beat expectations.
- Q1 results show revenue ~1% above consensus, adjusted EBITDA ~8% ahead and adjusted EPS significantly higher; trailing-twelve-month revenue $2.79 billion and diluted EPS $4.23.
- Segment performance was mixed - Global Pet Care outperformed, Home and Personal Care modestly beat, Home & Garden lagged; Oppenheimer raised its target to $85 and retained an Outperform rating.
Risks and uncertainties
- Margin pressure from lower volumes, elevated trade spending and higher tariff costs could persist and weigh on profitability - this affects consumer goods manufacturers and retailers.
- Home & Garden underperformance introduces execution risk for the company's recovery timeline, with potential implications for seasonal supply chains and inventory management.
- Continued consumer pressures assumed in guidance add uncertainty around demand trajectories for pet care, home care and garden categories.