Energizer stock price target raised to $27 from $24 at Barclays on production credits

Published 05/08/2025, 13:48
Energizer stock price target raised to $27 from $24 at Barclays on production credits

Investing.com - Barclays (LON:BARC) raised its price target on Energizer (NYSE:ENR) to $27.00 from $24.00 while maintaining an Equalweight rating on the stock. According to InvestingPro data, the stock has shown remarkable momentum with a 19.51% gain in the past week, though technical indicators suggest the stock is currently in overbought territory.

The price target increase follows Energizer’s recent quarterly results, which Barclays found encouraging, particularly the new disclosure of domestic production credits that should provide a "material and structural tailwind" to gross margins. The company maintains a healthy gross profit margin of 44.66% and boasts a solid financial health score of "GOOD" according to InvestingPro analysis.

Barclays noted that while there are near-term factors offsetting the full impact of these production credits—including transitory tariff costs, manufacturing network investments, and the APS acquisition—the credits ultimately create financial flexibility for the company.

The firm also highlighted that Energizer’s fundamentals appear solid, with the company now expecting to fully mitigate what had previously been anticipated as a material tariff drag in fiscal year 2026.

Energizer’s organic sales guidance remains intact, which Barclays viewed as another positive indicator of the company’s stable performance.

In other recent news, Energizer Holdings Inc. reported impressive third-quarter results for fiscal 2025, exceeding analyst expectations. The company achieved an earnings per share of $1.13, significantly higher than the projected $0.62, representing an 82.26% surprise. Revenue for the quarter reached $725.3 million, surpassing the anticipated $713.73 million. This strong performance was supported by a $21 million contribution from its Advanced Power Solutions acquisition and a slight organic sales growth of 0.1%, which outperformed the expected 0.9% decline. Canaccord Genuity responded to these results by raising its price target for Energizer to $29.00 from $27.00, while maintaining a Hold rating. This adjustment reflects the firm’s acknowledgment of Energizer’s strong quarterly performance. These developments underscore Energizer’s ability to exceed market expectations and its strategic growth through acquisitions.

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