Jarden Corp.'s shares rose Wednesday after a J.P. Morgan analyst initiated coverage of the company, saying that the market does not fully appreciate its strengths.
THE SPARK: Analyst John Faucher initiated coverage of the consumer products company with an "Overweight" rating and $62 price target.
THE BIG PICTURE: Jarden makes an array of household products, including Mr. Coffee machines, Coleman camping gear and Sunbeam can openers.
Despite the weak economy, the company has been able to make sales and profitability gains. Its stock price has risen more than 70 percent this year.
THE ANALYSIS: Faucher said that while the stock has moved up from its lows, he still finds it a compelling investment. He said in a research note that he doesn't think the market fully appreciates Jarden's transformation into a company focused on top-line growth, margin expansion and returning more cash to shareholders.
The analyst said Jarden has a portfolio of products that could create a more stable revenue stream than the market expects. The company also has a number of opportunities for growth in international markets.
SHARE ACTION: Jarden shares rose by $1.39, or 2.8 percent, to $51.72 in afternoon trading. The stock has traded between $29.24 and $55.77 in the past year.
- Investment & Company Information