UPDATE: Oppenheimer Initiates Coverage on Spectrum Brands on Interesting Investment Opportunity

In a report published Wednesday, Oppenheimer analyst Ian Zaffino initiated coverage on Spectrum Brands Holdings SPB with an Outperform rating and $82.00 price target. In the report, Oppenheimer noted, “Relatively underfollowed with a well-incentivized management team and a meaningful FCF ramp (10.9% CY15 FCF yield), SPB represents an interesting investment opportunity. The company recently restructured two business lines, acquired a fast growing, high-margin lockset business and refinanced expensive debt. Initiate with Outperform and $82 price target, based on 13.4x CY15E earnings, which is at a discount to its consumer staples peers.” Spectrum Brands Holdings closed on Tuesday at $63.40.