Newell Brands' (NWL) stock "pulled back" after a 40% surge following a strong Q2, now trailing small- and mid-capitalization companies within the household and personal care peers by 21% since late July, UBS said in a note emailed Friday.

Investor sentiment appears neutral to mixed, with many focusing on the uncertain timeline for a return to positive revenue growth, UBS said.

"[Newell] is scheduled to report [Q3] earnings on Friday 10/25 before the open," UBS said, adding that it projects earnings per share of $0.15, which is slightly below the Visible Alpha/FactSet consensus.

"While we believe that [Newell's] updated guidance is more than achievable, we agree that visibility remains quite limited around core sales growth trajectory heading into FY25, particularly for the Outdoor & Recreation segment which is still quite challenged," UBS said.

Newell raised its 2024 guidance after a strong Q2 and now expects core sales declines of -4% to -3% and net sales down -7% to -6%, with an adjusted operating profit margin of 8% to 8.2% and EPS of $0.60 to $0.65, the note said. "Our conversations would suggest that most investors have confidence in the company's ability to deliver on its updated guidance at this stage of the year," it added.

UBS has a neutral rating on Newell Brands with a 12-month price target of $8.50.

Shares of Newell Brands were up 2.1% in recent Friday trading.

Price: 7.84, Change: +0.16, Percent Change: +2.08