UBS Maintains a 'Buy' on Energizer (ENR); Open Up To Investors...Start A Dividend
ENR Hot Sheet
Rating Summary:4 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 18 | Down: 7 | New: 23
UBS maintains a 'Buy' on Energizer (NYSE: ENR) price target lowered from $92 to $87.
UBS analyst says, "While ENR printed a $0.13 EPS beat to consensus, we would broadly characterize the quarter as disappointing (weaker top line and poor quality). But this shouldn’t be a real surprise given last week’s reports from Kimberly-Clark (NYSE: KMB), Colgate (NYSE: CL), and Procter & Gamble (NYSE: PG). Even with its lowered guidance, investors can still get decent EPS growth at a relatively low P/E (11.8x)."
"Based on our experience covering tobacco stocks, it is clear to us that Energizer should initiate a dividend. Energizer is not a growth company, but the company is a free cash flow machine. Paying a dividend would open up the stock to new investors and would likely reduce volatility. We estimate ENR could comfortably hit a 2% yield…a good start for now."
For an analyst ratings summary and ratings history on Energizer click here. For more ratings news on Energizer click here.
Shares of Energizer closed at $76.72 yesterday, with a 52 week range of $61.60-$84.94.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
UBS analyst says, "While ENR printed a $0.13 EPS beat to consensus, we would broadly characterize the quarter as disappointing (weaker top line and poor quality). But this shouldn’t be a real surprise given last week’s reports from Kimberly-Clark (NYSE: KMB), Colgate (NYSE: CL), and Procter & Gamble (NYSE: PG). Even with its lowered guidance, investors can still get decent EPS growth at a relatively low P/E (11.8x)."
"Based on our experience covering tobacco stocks, it is clear to us that Energizer should initiate a dividend. Energizer is not a growth company, but the company is a free cash flow machine. Paying a dividend would open up the stock to new investors and would likely reduce volatility. We estimate ENR could comfortably hit a 2% yield…a good start for now."
For an analyst ratings summary and ratings history on Energizer click here. For more ratings news on Energizer click here.
Shares of Energizer closed at $76.72 yesterday, with a 52 week range of $61.60-$84.94.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
You May Also Be Interested In
- Needham & Company Reiterates a 'Buy' on NetApp (NTAP); Solid 4Q Overshadowed by Conservative 1Q
- Barclays Acknowledges Positive Q4 Results From Ralph Lauren (RL); Expect FY13 To Face Several Top Line Headwinds
- Barclays Maintains an 'Equalweight' on J. C. Penney (JCP); Slashing PT on Disappointing Results
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
UBS, DividendSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
