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Research Alert: CFRA Keeps Hold Opinion On Shares Of Energizer Holdings, Inc.

05/10/2021 14:14

06:10 PM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target by $5 to $55, 15.5x our FY 21 (Sep.) EPS estimate of $3.54 (raised from $3.32) in line with ENR's 5-year forward average. We lift our FY 22 EPS estimate to $3.80 from $3.70. ENR posts F2Q (Mar-Q) adj-EPS of $0.77 vs. $0.37, $0.17 above consensus. Organic sales rose 17.7% from strong demand and distribution gains, but gross margins compressed 110 bps Y/Y due to higher tariffs, transportation, labor, and input costs. Commodity inflation wasn't significant as ENR is fully hedged for FY 21 and about a quarter hedged for FY 22. However, as these hedges roll over throughout the year, the company could face greater cost pressure. ENR is hiking prices and focusing on cost savings initiatives and synergies to offset these inflationary headwinds, which we think will help protect gross profit dollars but not fully offset the margin impact. We keep a Hold, however, as we believe these risks are largely embedded in current expectations.