Reynolds Consumer Products Inc.’s stock (REYN) was down by 1.5% in premarket trading on Wednesday after J.P. Morgan analyst Andrea Teixeira downgraded the company to neutral from overweight and reduced its price target by $1 to $28 a share.
Teixeira cited four reasons for the ratings move including softer-than-expected market demand, and “sharp deterioration” in the Hefty tableware business, which is offsetting gains in Hefty trash bags. The company’s 50-50 mix of branded products and private label products is also impacting the company’s bottom line. Prior to Wednesday’s trades, Reynold Consumer Products stock was down by 11.4% in 2023, compared with an 18.2% gain in the S&P 500 .