William Blair Reiterates Outperform Rating on EnerSys (ENS)

William Blair is out with an analyst note this morning that reiterates their Outperform rating on shares of EnerSys (NYSE: ENS); analysts cited the company’s most recent conference call, when quarterly results were largely in-line with the positive prerelease in May.

Analysts said “management’s commentary regarding the end-market continues to sound more optimistic in our opinion, and the reported margins, despite headwinds from lead prices, are clearly demonstrating the cost controls put into place over the last 18 or so months.”

They also said that “the stock is trading at roughly 11 times our new fiscal 2011 EPS estimate, a level we find attractive given the improving end-market trends and management’s positive outlook, although we highlight that continued macro concerns, domestically and abroad, could cause elevated volatility for the stock in the short term.”

William Blair closed by saying, “Still, longer term, as the economy begins to stabilize/improve, we believe we should see a rapid return of earnings growth (particularly given management’s cost-cutting initiatives), leading to stock gains from this growth as well as multiple expansion into the midteens level.”