In a report released yesterday, Kevin Grundy from Jefferies maintained a Buy rating on Energizer Holdings Inc (ENR), with a price target of $59. The company’s shares closed yesterday at $45.83, close to its 52-week low of $42.74.
Grundy wrote:
“We update our model to reflect 1Q19 results / detail around GBC/GAC deals. Our FY21 EPS est. goes to $4.05 (from $4.80), in-line w/ ENR’s guide (i.e. 20% EPS accretion), though cut largely owing to non-cash deal D&A, w/our EBITDA est. down modestly. There is (understandable) near-term concern re: stability of acquired businesses; however, co. reaffirmed deal EBITDA, base battery biz is healthy, and valuation is attractive at 9.5x EV/EBITDA. Buy, PT to $59. Updating model based on recent guidance for deals: ENR provided on its 1Q call (2/5) – and disclosed in greater detail in a presentation today – a framework for financials post GBC/GAC deals. We incorporate these into our model and (a) while our EBITDA ests. fall by a modest -1%/-3%/-4% in FY19-21, (b) we cut EPS largely owing to non-cash deal D&A to reflect guidance of ~20% year-one dilution and ~20% year-three accretion.”
According to TipRanks.com, Grundy is a 4-star analyst with an average return of 5.4% and a 61.6% success rate. Grundy covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners plc, Interlink Electronics, Inc., and Constellation Brands Inc.
Energizer Holdings Inc has an analyst consensus of Strong Buy, with a price target consensus of $61.75.
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Energizer Holdings Inc’s market cap is currently $2.75B and has a P/E ratio of 26.91. The company has a Price to Book ratio of 38.99.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ENR in relation to earlier this year.
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Energizer Holdings, Inc. manufacturers and markets batteries and lighting products. The company’s products include household batteries, specialty batteries, and portable lighting. Energizer Holdings is headquartered in St. Louis, MO.
