Following its meeting with the management of Energizer Holdings Inc (NYSE: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. (NASDAQ:AMZN) is going to erode the company's market share and margins.
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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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