Canaccord Genuity Reaffirms Hold Rating on Reynolds Consumer Products (REYN)
Analyst Recommendation: Canaccord Genuity has maintained a "Hold" recommendation for Reynolds Consumer Products, with an average one-year price target of $27.10/share, indicating a potential upside of 6.16% from the current price of $25.53/share.
Revenue and Earnings Projections: The projected annual revenue for Reynolds Consumer Products is $4,058 million, reflecting a 9.47% increase, with a non-GAAP EPS forecast of 1.93.
Institutional Ownership Trends: There has been a 5.30% increase in the number of funds reporting positions in Reynolds Consumer Products, with total shares owned by institutions rising by 6.20% over the last three months.
Shareholder Activity: Notable changes in shareholder positions include significant increases by Fuller & Thaler Asset Management and UBVLX, while Wells Fargo Special Mid Cap Value Fund and T. Rowe Price Mid-Cap Growth Fund have reduced their holdings.
Trade with 70% Backtested Accuracy
Analyst Views on REYN
About REYN
About the author

- Tariff Ruling Impact: The Supreme Court's 6-3 decision deemed Trump's tariffs under the International Emergency Economic Powers Act unconstitutional, yet it does not affect tariffs under the Trade Expansion Act, leaving certain sectors to face ongoing cost pressures.
- Automotive Industry Strain: Major U.S. automakers like General Motors expect tariff costs between $3 billion and $4 billion this year, while Ford anticipates a flat $2 billion impact, although the Supreme Court ruling's immediate effects on these forecasts remain unclear.
- Pharmaceutical Uncertainty: The Trump administration has threatened tariffs on pharmaceuticals that could reach 250%, which, if enacted, would push drug companies to increase U.S. manufacturing, thereby impacting the industry's strategic direction despite current exemptions.
- Furniture Sector Challenges: The furniture industry continues to face a 25% tariff post-ruling, with expectations of an increase to 50% by 2027, disproportionately affecting smaller firms and leading to bankruptcies, such as that of American Signature Furniture.
- Tariff Ruling Impact: The Supreme Court's ruling that Trump's 'reciprocal' tariffs are unconstitutional provides some relief for consumer companies facing high import costs, yet it does not eliminate the burden of existing tariffs across various sectors.
- Automotive Industry Pressure: The automotive sector continues to face billions in tariff costs, with a 25% tariff imposed on imported vehicles and parts last year, although some countries have negotiated reductions to 10%-15%, the overall impact on the industry remains unclear.
- Pharmaceutical Uncertainty: The pharmaceutical industry is at risk of potential tariffs reaching 250%, as Trump has threatened such measures, which, if enacted, would compel drug manufacturers to produce domestically, adding significant uncertainty to the sector.
- Furniture Industry Struggles: The furniture industry still faces a 25% tariff post-ruling, with expectations of an increase to 50% by 2027, severely impacting smaller companies and leading to bankruptcies, highlighting the ongoing challenges in this sector.
- Continued Tech Decline: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) fell for the seventh consecutive day, returning to levels last seen during the April 2025 tariff shock, indicating a severe lack of confidence in tech stocks.
- Nasdaq Index Drop: The Nasdaq 100 dropped 2.2% after a 1.7% decline on Tuesday, as investors aggressively rotated out of long-duration growth stocks into energy and materials, reflecting a risk-off sentiment in the market.
- Bitcoin Price Decline: Bitcoin (CRYPTO:BTC) slid 2.5% to around $73,000, marking its lowest level since early November 2024, fully erasing the post-Trump election rally, which highlights the risk-averse tone in the crypto markets.
- Palantir Stock Plunge: Palantir Technologies Inc. (NASDAQ:PLTR) tumbled over 12%, reversing part of Tuesday's 6.9% surge, indicating investor concerns about the company's outlook, which may impact its future financing and market performance.
- Solid Revenue Growth: Q4 2025 net revenues reached $1.03 billion, a 1% increase from $1.02 billion in Q4 2024, demonstrating resilience in market share gains and brand performance despite commodity and tariff pressures.
- Product Innovation Expansion: The company introduced new Hefty waste bags, Reynolds KITCHENS cooking bags, and ECOSAVE compostable cutlery, enhancing product line diversity aimed at meeting consumer demands and boosting market competitiveness through innovation.
- Cautious 2026 Outlook: Net revenues for 2026 are projected to decline by 3% to increase by 1%, and while management remains optimistic about stable adjusted EBITDA, they must navigate intensified competition and rising costs.
- Strategic Realignment Plans: The company plans to realign the Hefty and Presto category organizations in Q1 2026 to improve efficiency and focus on innovation, aiming to better capture growth opportunities, although no substantial personnel changes are anticipated.
- Earnings Beat: Cirrus Logic reported third-quarter earnings of $2.97 per share, surpassing the analyst consensus estimate of $2.44 per share, indicating a significant improvement in profitability and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $580.620 million, exceeding the analyst consensus estimate of $533.890 million, demonstrating strong market demand and driving sustained performance growth.
- Stock Surge: Following the positive earnings report, Cirrus Logic's shares jumped 7.6% to $134.10 on Wednesday, reflecting market optimism regarding the company's future growth potential.
- Optimistic Guidance: Cirrus Logic provided fourth-quarter sales guidance that is expected to exceed market estimates, further solidifying its competitive position in the semiconductor industry.
- Quarterly Dividend Announcement: Reynolds Consumer Products declares a quarterly dividend of $0.23 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy.
- Yield Performance: The forward yield of 4.22% reflects the company's attractiveness in the current market environment, potentially drawing more investor interest.
- Shareholder Record Dates: The dividend will be payable on February 27, with a record date of February 13 and an ex-dividend date also on February 13, ensuring shareholders receive their returns promptly.
- Financial Performance Overview: Reynolds Consumer Products reported a non-GAAP EPS of $0.59, in line with expectations, while revenue of $1.03 billion exceeded market forecasts by $20 million, showcasing the company's strong performance in revenue growth.










