Rayovac Is Causing Energizer (ENR) To Underperform But The Performance Lag Is Temporary - RBC

RBC Capital analyst Nik Modi reiterated an Outperform rating and $70.00 price target on Energizer (NYSE: ENR) after shares underperformed the market due to a combination of weak scanner trends (Rayovac) and growing concern over potential for downward pressure on the shares as SPB’s lock-up expires in January 2020. However, the analyst is unconcerned with these two issues:

Rayovac dollar sales growth was down 12.9% in the latest 12 weeks ended 6/02/19 but, it should not be a surprise since management indicated that performance in the acquired battery business had been challenged by share declines from shelf space losses due to a lengthy acquisition process, during which time ENR management did not have the ability to directly influence any commercial activity.

The analyst stated "We remind investors that in-store execution is this management team’s core competency, so we are confident that the Rayovac brand will gradually regain shelf space losses."

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 $39.20 yesterday.

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