Deutsche Bank Maintains a 'Buy' Rating on Energizer (ENR); Slashes Price Target

November 5, 2009 7:02 AM EST

Deutsche Bank maintains a 'Buy' rating on Energizer (NYSE: ENR), but cuts price target from $80 to $65.

Deutsche analyst says, "Currency and commodity driven margin upside story under pressure despite easing comparisons and nascent macro recovery. Likely preparing for a stepped up promotional environment as input cost pressures abate, company is reinvesting in advertising and promotion to protect market share and expand its categories, at the expense of previously anticipated margin and EPS upside. With stock down considerably, valuation remains undemanding on conservative guidance...Lowers 4Q09 EPS of $0.97, $0.19 below our estimate due to gross margin pressure."...Risks include further volume softness from retailer inventory destocking and store brand share gains, inability of higher spending to drive organic growth, further category contraction and rising input costs."

To see more analyst ratings on ENR Click Here.

Energizer Holdings, Inc., through its subsidiaries, manufactures primary batteries, flashlights, and men's and women's wet-shave products.

Related Categories

Analyst Comments

Stocks Mentioned

Related Entities

• Deutsche Bank

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?