UPDATE: Stifel Nicolaus Resumes Buy, $40 Target on EnerSys

Stifel Nicolaus resumes its coverage on EnerSys

with a Buy rating and a price target of $40, reflecting the company's solid execution over the past two quarters. Stifel Nicolaus says, "Following a difficult F1Q12 earnings report and F2Q12 guidance in August, 2011, EnerSys has outperformed expectations for two consecutive quarters. While revenues beat expectations on a stronger-than-expected recovery in North America, the real driver of the bottom-line outperformance has been significant gross margin accretion driven by falling lead-prices. Since the LME 3-month forward contract peaked at $2,lea855/mt in early-April, lead has sold off considerably." ENS closed at $33.92 a share on Friday.