The price target cut comes on the devaluations of the Argentine Peso and Brazilian Real, which were largely expected, but prolong currency headwinds that had been gradually improving, the firm said.
"Our long-term thesis remains intact, supported by a best-in-class dividend we continue to view as secure and attractive emerging market exposure that presents strong long-term growth story," Keybanc said in an analyst note.
The Orlando-based company is engaged in the manufacture and sale of Tupperware storage solutions, cosmetics and personal care products. The company has segments in the U.S., Canada, Puerto Rico, Mexico and in Central and South America.
Shares of Tupperware closed at $56.24 on Tuesday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate TUPPERWARE BRANDS CORP as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Household Durables industry and the overall market, TUPPERWARE BRANDS CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for TUPPERWARE BRANDS CORP is rather high; currently it is at 69.88%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 6.94% is above that of the industry average.
- Net operating cash flow has slightly increased to $48.10 million or 6.65% when compared to the same quarter last year. Despite an increase in cash flow of 6.65%, TUPPERWARE BRANDS CORP is still growing at a significantly lower rate than the industry average of 123.38%.
- TUP has underperformed the S&P 500 Index, declining 10.76% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The debt-to-equity ratio is very high at 7.18 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.44, which clearly demonstrates the inability to cover short-term cash needs.
- You can view the full analysis from the report here: TUP