Energizer (ENR) PT Lowered to $22 at Morgan Stanley

Morgan Stanley analyst Dara Mohsenian lowered the price target on Energizer (NYSE: ENR) to $22.00 (from $28.00) while maintaining a Equalweight rating.

The analyst comments "FQ4 Miss and Weaker Than Expected FY26 Guidance: ENR's stock declined 18.5%, vs a 0.8% S&P decline, after reporting a Q4 miss and issuing weaker than expected FY26 guidance, which also includes a much softer than expected FQ1 due to a weak consumer environment and a tough topline comparison, as well as transitory cost pressure-see detail below. This weak Q1 start also reduces FY26 visibility, with an assumed rebound to 12% EPS growth (at its midpoint) in the BOY post FQ1. Net, a weaker consumer environment is pressuring topline, on top of cost/tariff pressure on COGS, with mitigating actions aiding margins post Q1. Equal-Weight: We remain EW ENR here despite depressed valuation, given macro pressure on topline is likely to linger with ENR's semi-discretionary portfolio, and low visibility with an assumed ramp-up in EPS to 12% growth from FQ2-Q4 in ENR FY26, exacerbated by high leverage of 5.1x LTM net debt/EBITDA. We reduce our adjusted EBITDA estimates by -7%/-8% in FY26/27, respectively, and cut our price target to $22 from $28 with lower estimates and lower peer group multiple."

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