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Research Alert: CFRA Maintains Hold Opinion On Shares Of Edgewell Personal Care Company

05/11/2021 12:43

04:40 PM EDT, 05/11/2021 (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 $7 to $45, 14.5x our FY 22 (Sep.) EPS estimate and in line with EPC's average forward P/E. We lower our FY 21 EPS estimate to $2.86 from $2.88 and FY 22's to $3.11 from $3.25. EPC posts F2Q (Mar-Q) adj-EPS of $0.70 vs. $0.92 (-24%), $0.11 above consensus and driven by SG&A savings as sales missed consensus by about 2%. Organic sales fell 5.6% vs. the -2.8% consensus. However, there were some positives, such as Wet Shave returning to growth (1.1% organic sales growth) and Sun Care posting strong April results. EPC kept its EPS guidance of $2.62 to $2.82 but did note it is leaning towards the upper end of this range, despite having to operate in an accelerating inflationary environment. Overall, the results were encouraging with improving trends in Wet Shave and Skin Care. However, we keep a Hold given low visibility into the remainder of the year and our belief that these positive trends are largely reflected in EPC's current valuation.