Energizer (ENR) Emerges Favorite: Merrill Lynch Report

Research analysts Christopher Ferrara and Olivia Tong of Merrill Lynch (NYSE: SRIB) have named Energizer (NYSE: ENR) as their favorite small cap value stock. In a report released today, the target P/E has been set at a 25% discount to the group average, given Energizer’s slightly riskier profile and dependence on battery sales.

The report is optimistic about Energizer’s sales trend, product activity, and the impact of ad spends. Also, the FY10 EPS estimate has been raised to $5.37 from $5.31, based on non-operating terms.