Energizer stock price target cut to $27 by Canaccord Genuity

Published 07/05/2025, 13:02
Energizer stock price target cut to $27 by Canaccord Genuity

Wednesday, Energizer Holdings (NYSE:ENR) faced a price target reduction from Canaccord Genuity, with the new target set at $27, down from the previous $31, while the firm maintained a Hold rating on the stock. The adjustment came after Energizer reported its second-quarter results for the fiscal year 2025 before the market opened today. The stock, currently trading at $23.87, has declined 11.72% over the past week and appears undervalued according to InvestingPro analysis. Notably, the stock offers a substantial 5.03% dividend yield to shareholders.

Energizer’s Q2 2025 performance showed organic sales growth of 1.4%, which was nearly in line with Canaccord Genuity’s expectations and consensus estimates of a 1.5% increase. The Battery & Lights segment experienced a volume increase of 1.9%, attributed to new and expanded distribution channels. Conversely, Auto Care volumes remained unchanged. The company’s efforts in new distribution, international expansion, and innovation were counterbalanced by a shift in the timing of refrigerant sales to the third quarter.

The company’s strategy of planned pricing and promotional investments, which accounted for a 0.5% impact, helped to partially mitigate the effects of increased volumes in both segments. Energizer’s adjusted EBITDA surpassed consensus estimates by approximately 3%, while the adjusted earnings per share (EPS) met expectations.

Following the review of the quarter’s outcomes and the company’s revised full-year guidance, Canaccord Genuity has revised its estimates. The firm’s analyst reiterated a Hold rating on Energizer’s stock, alongside the lowered price target, reflecting a cautious stance on the stock’s near-term prospects.

In other recent news, Energizer Holdings Inc. reported its second-quarter 2025 earnings, with earnings per share (EPS) meeting analysts’ expectations at $0.67. However, the company’s revenue of $662.9 million fell slightly short of the projected $670.89 million. Despite the earnings meeting expectations, the modest revenue miss reflected investor concerns over flat sales and future growth prospects. Energizer’s battery business showed a 3% organic growth, while the auto care segment experienced a 5.5% increase. The company is actively investing in digital transformation and sustainability initiatives to bolster its future performance. Energizer has also recently acquired a manufacturing plant in Poland, which will assist in transitioning the Panasonic (OTC:PCRFY) brand to Energizer in Europe. Analyst firms have not provided new upgrades or downgrades following these announcements. The company projects its full-year organic net sales to be flat to up 2% and anticipates a gross margin increase of 50 basis points.

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