UPDATE - UBS Upgraded Energizer (ENR) to Buy; Is Cost of Capital Going Lower?
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Price: $21.47 +2.29%
Rating Summary:
6 Buy, 16 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 16 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - UBS upgraded Energizer (NYSE: ENR) from Neutral to Buy. PT increased from $76 to $85.
UBS analyst said, "While near-term earnings could be pressured by higher spending levels behind Hydro (to stave off P&G’s re-launch of ProGlide), we believe Energizer’s valuation (the lowest in the group) is poised to improve as the company pursues a more shareholder friendly investor communication program (which should help improve visibility, lower volatility and result in a lower cost of
capital)."
"Introducing the “Ralcorp Affect” - We believe the situation between ConAgra (NYSE: CAG) and Ralcorp (NYSE: RAH) has provided Energizer management a jolt to address its industry low multiple. We believe the “Ralcorp Affect” is already manifesting in more transparency with the Street, but we also believe it could manifest itself in Energizer management getting more aggressive with its cost structure. Presently, Energizer’s profit per employee is 58% below its HPC peers. If the company improved its profit per employee by just 1.0%, it would equate to $0.66 in after-tax EPS and $9/share in equity value."
UBS analyst said, "While near-term earnings could be pressured by higher spending levels behind Hydro (to stave off P&G’s re-launch of ProGlide), we believe Energizer’s valuation (the lowest in the group) is poised to improve as the company pursues a more shareholder friendly investor communication program (which should help improve visibility, lower volatility and result in a lower cost of
capital)."
"Introducing the “Ralcorp Affect” - We believe the situation between ConAgra (NYSE: CAG) and Ralcorp (NYSE: RAH) has provided Energizer management a jolt to address its industry low multiple. We believe the “Ralcorp Affect” is already manifesting in more transparency with the Street, but we also believe it could manifest itself in Energizer management getting more aggressive with its cost structure. Presently, Energizer’s profit per employee is 58% below its HPC peers. If the company improved its profit per employee by just 1.0%, it would equate to $0.66 in after-tax EPS and $9/share in equity value."
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