Energizer Holdings (ENR – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Dara Mohsenian from Morgan Stanley maintained a Hold rating on the stock and has a $27.00 price target.
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Dara Mohsenian has given his Hold rating due to a combination of factors affecting Energizer Holdings. The company’s second-quarter earnings per share (EPS) were in line with expectations, but the quality was considered low due to a miss in organic sales growth and gross profit. The operating profit beat was primarily driven by reduced advertising and promotion spending, which is not seen as a sustainable improvement.
Furthermore, Energizer Holdings has lowered its full-year guidance, citing a challenging macroeconomic environment and reduced organic sales growth outlook. The company faces low visibility in its semi-discretionary portfolio, particularly in the battery segment, due to economic pressures. Additionally, while tariffs have been offset for the current fiscal year, they pose a potential risk for the future. These factors, combined with high debt leverage, contribute to the Hold rating, as the risks appear to be reflected in the current valuation.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $27.00 price target.