Deutsche Bank Comments on Energizer (ENR) Split

Deutsche Bank maintained a Buy rating on Energizer (NYSE: ENR) with a price target of $120.00. Comment follow an announced that its Board of Directors has authorized management to pursue a plan to separate the Company's Household Products and Personal Care divisions into two independent, publicly traded companies.

"We believe the household business will trade at 7-8x EBITDA on a standalone basis (15-25% discount to SPB) and personal care should trade at 10-12x. Importantly, these business become takeover candidates with Spectrum a likely buyer for batteries (>8x) and myriad potential buyers for personal care (12-14x), with Chattem (13.1x) and Alberto-Culver (13.6x) appropriate transaction comps, as we have discussed at length in the past. On standalone basis, given aforementioned multiples, we believe the combined businesses are worth $110-$125, with potential upside to $140-$150 in a change of control scenario," said analyst Bill Schmitz Jr.

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 $97.71 yesterday.

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