JPMorgan analyst Andrea Teixeira reiterated an Underweight rating and $32.00 price target on Energizer (NYSE: ENR).

The analyst comments "Energizer Holdings (ENR, Underweight-rated) reported F4Q24 adjusted EPS of $1.22, which was $0.06/$0.05 above both JPM/consensus estimates of $1.16/ $1.17 and also above the high end of guidance range of $1.10-$1.20. Variances vs. our forecasts were predominantly driven by a better gross margin (+$0.05 vs. JPMe), lower SG&A, including A&P and R&D (+$0.03 vs. JPMe) and lower taxes ($0.03 vs. JPMe) partially offset by lower top line (-$0.01 vs. JPMe), and the remainder was due to other non-operational items (about -$0.04 vs. JPMe). Total company organic revenue was flat, in line with guidance, and compares with our projection of +0.1% and Consensus Metrix (or “CM”) estimate of -0.2%. This was mainly led by volumes up +1.8% (broken out by +1.3% in Batteries & Lights and +0.5% in Auto Care) while pricing plus promotions fully offset with down -1.8%. Additionally, Argentina had an impact of -0.3% and FX of -0.4%, leading to net sales decline of -0.7% (vs. JPM/Street estimates of -0.2%/-0.6%). By segment, Battery and Lights organic revenue was flat, which was on the dot with our estimate but was slightly higher (+10 bps ) vs. CM, and Auto Care organic sales was negligibly up +0.1%, which was -40 bps below our estimate of +0.5% and -20 bps below CM. Furthermore, profitability was better by +63 bps from our on-consensus estimate, with adjusted gross margin of 42.2% (about +220 bps expansion YOY). More importantly, the initial FY25 guidance met expectations, with positive surprise from adjusted EBITDA growth on the back of top-line growth and final year of Projected Momentum savings. Project Momentum costs savings range of $180M-$200M was reiterated, implying savings of $40M-$60M in FY25, and remember cash costs to achieve is $150M-$170M..."

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 $34.15 yesterday.