Market Overview

Concerning Nielsen Data Prompts JPMorgan Downgrade Of Energizer Holdings

Concerning Nielsen Data Prompts JPMorgan Downgrade Of Energizer Holdings

A bearish case for battery and portable lighting product maker company Energizer Holdings Inc (NYSE: ENR) can be made after recent Nielsen data pointed to a concerning outlook, according to JPMorgan.

The Analyst

Andrea Teixeira downgraded Energizer Holdings from Neutral to Underweight with a price target lowered from $45 to $36.

The Thesis

Data from Nielsen shows Energizer's acquired Rayovac battery business is deteriorating in the U.S., Teixeira said in a Wednesday note. (See her track record here.) 

The brand saw shelf space losses and contracted 14.9% year-over-year for the 12-week period ended May 18, the analyst said. 

This would mark an acceleration in shelf space loss, as prior Nielsen data found a 12% loss for the 12-week period ending March 23, Teixeira said. 

The North American market accounts for an estimated 70% of Rayovac's total business and the concerning Nielsen data readout likely implies Rayovac's sell-through rate will remain pressured through the fiscal third quarter of 2020.

Aside from Nielsen data, Energizer faces an overhang risk from Spectrum Brand's 7.6% ownership stake in Energizer, with a lockup period expiring in January 2020.

JPMorgan lowered its 2019 EPS estimate for Energizer Holdings from $2.95 to $2.80.

The firm also lowered its EPS estimates for the next year from $3.31 to $2.97.

Price Action

Energizer hit a new 52-week low of $38.31 Wednesday morning, and the stock was down 6.96% at $38.91 at the time of publication. 

Related Links:

10 Biggest Price Target Changes For Wednesday

Benzinga's Top Upgrades, Downgrades For June 19, 2019

Latest Ratings for ENR

Dec 2019MaintainsBuy
Dec 2019MaintainsEqual-Weight
Nov 2019UpgradesUnderweightNeutral

View More Analyst Ratings for ENR
View the Latest Analyst Ratings

Posted-In: Andrea Teixeira Battery JPMorgan nielsenAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (ENR)

View Comments and Join the Discussion!

Latest Ratings

VIACJP MorganReinstates50.0
NUVASVB LeerinkMaintains92.0
SRPTCantor FitzgeraldMaintains211.0
LULUGoldman SachsMaintains219.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

How Trucks Are Becoming A Solution, Not A Product

Analysts Discuss Libra's Impact On Facebook, Cryptocurrencies And The Payments Market