UBS raises Energizer stock price target to $29 on strong earnings

Investing.com - UBS raised its price target on Energizer (NYSE:ENR) to $29.00 from $23.00 on Tuesday, while maintaining a Neutral rating on the battery maker’s stock. According to InvestingPro data, Energizer currently trades at an attractive P/E ratio of 8.2x, with analysis suggesting the stock is currently undervalued relative to its Fair Value.

The price target increase follows Energizer’s fiscal third-quarter earnings report, which showed earnings per share of $1.13, significantly exceeding both UBS and Street forecasts. The company delivered better-than-expected organic growth and gross margin upside, including benefits from production credits. InvestingPro data shows the company maintains a healthy gross profit margin of 44.7% and strong liquidity with a current ratio of 1.78.

Energizer also raised its full-year 2025 guidance, though its fourth-quarter earnings guidance came in below consensus expectations. Despite this mixed outlook, Energizer shares reacted positively to the results, finishing Monday up nearly 27% compared to the Consumer Staples Select Sector SPDR Fund’s 0.5% gain. InvestingPro analysis reveals the stock has delivered an impressive 19.5% return over the past week, though the RSI indicates overbought conditions.

UBS noted that Energizer shares have shown recent strength, rising 12% since late June compared to peers’ 1.5% gain. The firm attributed the stock’s outperformance to the magnitude of earnings upside and positive early commentary on fiscal year 2026.

With Energizer shares now trading at approximately 7.5 times UBS’s revised fiscal 2026 earnings estimate, the firm believes "much of the low hanging fruit has been captured," explaining its maintained Neutral stance despite the higher price target.

In other recent news, Energizer Holdings Inc. reported impressive third-quarter fiscal 2025 results, surpassing analyst expectations. The company achieved an earnings per share of $1.13, significantly higher than the forecasted $0.62, resulting in an 82.26% surprise. Revenue also exceeded projections, reaching $725.3 million compared to the anticipated $713.73 million. This strong performance was supported by a $21 million contribution from Energizer’s Advanced Power Solutions acquisition and a slight organic sales growth of 0.1%, outperforming expectations of a 0.9% decline.

Barclays (LON:BARC) responded to these results by raising its price target for Energizer to $27.00, citing the positive impact of domestic production credits on gross margins. Canaccord Genuity also increased its price target to $29.00, maintaining a Hold rating, and acknowledged the company’s robust third-quarter performance. Both firms noted the encouraging financial disclosures and potential for future growth. These developments indicate strong investor confidence in Energizer’s strategic direction and financial health.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.