UBS Maintains a 'Buy' on Energizer (ENR); Open Up To Investors...Start A Dividend
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Price: $21.72 -1.41%
Rating Summary:
6 Buy, 16 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 5 | New: 8
Rating Summary:
6 Buy, 16 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 5 | New: 8
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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.
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.
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