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Oppenheimer Believes EnerSys (ENS) Still Has Room to Grow


Oppenheimer analyst Noah Kaye maintained a Buy rating on EnerSys (NYSE: ENS) today and set a price target of $95. The company’s shares closed yesterday at $87.64, close to its 52-week high of $87.99.

Kaye said:

“We recently hosted ENS CEO for investor meetings. Management spoke to broadly strong end-markets, led by reserve (5G, data center, transportation), and we believe the company is making the appropriate investments to capture higher-ASP and margin sales for premium products. On margins, we are somewhat cautious vs. consensus for F3Q18 given expected cadence of tariff and lead price impacts, but we are incrementally bullish on sales/margin trajectory into FY20 and accordingly raise our FY20 estimates. With an active M&A pipeline offering potential catalysts, and our view to multi-year growth tailwinds in reserve, we raise our price target to $95 (from $86).”

According to TipRanks.com, Kaye is a 4-star analyst with an average return of 5.6% and a 54.1% success rate. Kaye covers the Industrial Goods sector, focusing on stocks such as Rockwell Automation Inc, Caterpillar, and BorgWarner.

EnerSys has an analyst consensus of Moderate Buy, with a price target consensus of $95.

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Based on EnerSys’ latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $45.86 million. In comparison, last year the company had a net profit of $43.22 million.

Based on the recent corporate insider activity of 149 insiders, corporate insider sentiment is negative on the stock.

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EnerSys manufactures and markets industrial batteries. It engages in stored energy solutions for industrial applications, manufactures and distributes reserve power and motive power batteries, chargers, power equipment, and battery accessories to customers.