11:52 AM EDT, 05/10/2024 (MT Newswires) -- Spectrum Brands' ( SPB ) fiscal Q2 results reflect that the company has turned a corner and is now more focused and simplified, Oppenheimer said in a note Friday.

Analysts, including Ian Zaffino, said that the company plans to announce the sale, joint venture, or spin of its Home and Personal Care business by the fiscal year-end. They added that the most logical buyer would be a foreign company without a meaningful US presence.

The home essentials provider's fundamentals have started to recover noticeably, with Home and Garden sales rising 5% year-over-year in fiscal Q2, earnings before interest, taxes, depreciation, and amortization, or EBITDA, nearly doubling year-over-year, and the Controls business and the Cutter brand performing well, the analysts said.

Management now expects sales to remain the same year-over-year, while adjusted EBITDA is expected to rise by a low double-digit percentage compared to the previous year, the analysts said.

"We believe the stock remains attractively valued as the company right-sizes the business units, de-levers and buys back shares, and pursues the separation of the HPC business," the analysts said.

Oppenheimer has an outperform rating on the stock. It raised the company's price to $115 from $88 "as fundamentals continue to improve and Spectrum Brands ( SPB ) transitions into a more focused, better-run, two-vertical company."

Price: 94.76, Change: +0.14, Percent Change: +0.15