On Friday, Deutsche Bank (ETR:DBKGn) maintained a positive outlook on Energizer Holdings, Inc. (NYSE: NYSE:ENR), raising its price target to $375 from the previous $359, while keeping a Buy rating on the stock. The firm's analysis indicates that Energizer's May revenues have shown a healthy increase, with revenue growth tracking at 9.4%. The combined revenue growth for April and May is estimated at 11.2%.
The report notes that while June 2023 presents the most challenging comparison of the quarter, if the revenue trends from April and May persist into June, year-over-year revenues could see an increase of 9.8%. The preliminary data for June is anticipated to be available on July 20th, and the firm plans to release this information before Energizer's earnings report.
Deutsche Bank's expert calls suggest that Energizer will likely experience robust revenue growth in June, supporting the firm's belief that its revenue estimates are reasonable. The raised price target reflects this optimistic revenue outlook and suggests confidence in the company's performance. The next update on Energizer's financial progress will be closely watched by investors, as it will provide further insights into the company's quarterly earnings trajectory.
In other recent news, Energizer Holdings reported robust growth in its second-quarter earnings, with a notable 13% increase in adjusted earnings and improvements in both the battery and Auto Care segments. The company's adjusted gross profit and adjusted EBITDA surpassed analyst projections by approximately 3% and 4%, respectively, leading to an adjusted earnings per share that was around 7% higher than anticipated.
Despite the positive results, Energizer reiterated its full-year guidance but adjusted it to the lower end of the previous range, particularly regarding organic sales growth.
Following these developments, Canaccord Genuity adjusted its price target for Energizer Holdings shares to $32 from $33, maintaining a Hold rating on the stock. The decision to lower the stock price target was primarily due to modest estimate reductions for the second half of 2024.
In another recent development, Morgan Stanley (NYSE:MS) upgraded Energizer's stock from Underweight to Equal-weight, maintaining a price target of $33.00. The upgrade reflects a shift in expectations for the company's financial health and market performance, with the firm citing a more reasonable valuation of the stock after recent underperformance, in addition to updated estimates post post-second fiscal quarter earnings.
Lastly, Energizer plans to pay down a substantial portion of its debt by the end of the fiscal year, projecting full-year adjusted EBITDA to be between $600 million and $620 million. These are the recent developments surrounding Energizer Holdings.
InvestingPro Insights
In light of the recent analysis by Deutsche Bank and other financial institutions, InvestingPro offers additional insights into Energizer Holdings, Inc. (NYSE: ENR) that may be of interest to investors. According to real-time data from InvestingPro, Energizer's current Market Cap stands at approximately $2.12 billion, with a Price/Earnings (P/E) Ratio of 24.66. However, when adjusted for the last twelve months as of Q2 2024, the P/E Ratio becomes more attractive at 9.79. This suggests that while the company's earnings are being valued highly in the current term, expectations of near-term earnings growth are much more favorable.
An InvestingPro Tip highlights that Energizer is trading at a low P/E ratio relative to near-term earnings growth, which could be an indicator of potential undervaluation by the market. Moreover, the company's valuation implies a strong free cash flow yield, which is often seen as a positive sign of financial health and value creation for shareholders.
Another key data point is the Price / Book (P/B) ratio, which, as of the last twelve months ending Q2 2024, stands at 11.1. This is considered high and suggests that the market is valuing the company's assets at a premium. This metric, combined with the fact that Energizer's liquid assets exceed short-term obligations, may indicate a solid balance sheet position.
For investors looking for more comprehensive analysis, there are additional InvestingPro Tips available for Energizer. These tips include insights on shareholder yield, analyst revisions, and profitability predictions. Specifically, there are 7 more tips listed on InvestingPro that could provide a deeper understanding of the company's financial outlook. To explore these tips and gain further insights into Energizer Holdings, investors can visit https://www.investing.com/pro/ENR.
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