Energizer Holdings, Inc. (ENR) Upgraded To Buy
February 04, 2010 12:42 PM
BOE Research Services, Inc. has upgraded Energizer Holdings, Inc. (NYSE: ENR) from Hold to Buy rating. The company reported revenue of $1.17 billion for the first-quarter of FY10, a 12.9% over the first-quarter of FY09. The revenue was mainly driven by strong growth in the company’s Household Products, and Personal Care segments.
Energizer reported gross profit of $560 million, a 9.1% increase over the same period last year. The company reported operating income of $266 million for the quarter. The company expanded its operating margin by 130 basis points.
The company expects a sluggish outlook for its battery business in FY10.The company attributes this to, the expected decline in consumption, pricing pressure, and the ongoing downturn in the economy.
However, BOE Research Services believes that the company is currently trading at a significant discount to its peers. According to the research firm, Energizer Holdings, Inc. is selling at a 15% discount to their valuation estimate.
