UPDATE: Monness Crespi Hardt Reiterates on Spectrum Brands Holdings Following Better-Than-Expected 4Q Results

In a report published Friday, Monness Crespi Hardt analyst Jim Chartier reiterated a Buy rating on Spectrum Brands Holdings (NYSE: SPB), and raised the price target from $78.00 to $85.00.

In the report, Monness Crespi Hardt noted, “We reiterate our Buy rating on Spectrum Brands Holdings. Inc. (SPB) shares and are raising our price target to $85 (from $78). Our $85 price target is based on 10x our FY15 cash flow per share estimate of $8.47. Alternatively, our price target implies the company will trade at a 10.3x EV/EBITDA multiple a year from now, following the pay down of $250 million of debt. Our target multiple represents a discount to the average EV/EBITDA multiple of 11.0x ttm EBITDA for comparable companies. We note that an EV/EBITDA multiple does not give the company credit for its net operating loss carryforwards which we value at more than $5 per share. Giving the company credit for $5 per share of NOL's, our target price implies a multiple of 9.3x a year from now which is in line with the current valuation of comparable companies on 2014 EBITDA.”

Spectrum Brands Holdings closed on Thursday at $67.87.