Following its meeting with the management of Energizer Holdings Inc ENR, Citigroup's Wendy Nelson said the company's shares now offer a terrific buying opportunity.
Nelson noted that Energizer shares have fallen about 30 percent over the last four months, primarily due to the fear that Amazon.com, Inc. AMZN is going to erode the company's market share and margins.
Additionally, Citigroup believes the company's top line is pressured by a repositioning of the company's portfolio, which has also boosted inventory levels. The departure of a well-regarded CFO and the lack of meaningful share repurchase activity were also in part responsible for the downside, the firm added.
Concluding, Citigroup said a lot of misconception and a little bit of reality have created the terrific buying opportunity.
Citigroup said Energizer remains a high conviction Buy, with a $54 price target, which suggests 30 percent upside from current levels.
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