Evercore ISI has reduced its 12-month price target on Energizer (ENR) to $28.00 from $30.00 while retaining an Outperform recommendation on the battery manufacturer’s shares. The revised target sits close to InvestingPro’s Fair Value estimate, and the stock — trading at $22.56 at the time of this report — remains below that benchmark after a 24.27% decline over the past year.
In explaining the target change, Evercore pointed to highly variable quarterly performance at Energizer that is strongly influenced by weather-driven demand surges and pronounced seasonality in the December quarter tied to toys and consumer electronics. Those demand swings, the firm said, complicate efforts to forecast underlying sales trends on a consistent basis.
Evercore also examined shifts within retail battery assortments. Some retailers have been expanding private label battery offerings, but the firm emphasized that such gains have largely come at Duracell’s expense rather than directly eroding Energizer’s share. At the same time, Evercore noted that retailers tightened inventories, a dynamic that led to an 8% contraction in North America; international markets helped partially offset that decline.
The research house observed that Energizer saw improving end-market volumes in December and that subsequent pantry loading associated with winter storms in January further influenced near-term sales. After removing these episodic effects, Evercore’s calculations indicate U.S. retail sales for batteries are essentially flat on both a two-year and three-year compound annual growth rate basis.
Evercore’s view on market structure is that the U.S. battery category is increasingly polarized between a dominant national brand and private label alternatives. Within that context, Duracell has continued to lose distribution at major retailers such as Walmart and Amazon and has become more reliant on Costco for placement, the firm said.
From a valuation and income perspective, Energizer offers a 5.32% dividend yield and trades at a price-to-earnings multiple of 7.42, metrics Evercore highlighted while assessing the stock’s investment case. InvestingPro data referenced alongside the firm’s note indicates Energizer remains profitable and carries a solid financial health score.
Separately, Energizer reported first-quarter results for fiscal 2026 that beat consensus on both the bottom and top lines. The company posted earnings per share of $0.31 versus an expected $0.26 and reported revenue of $731.7 million compared with projections of $715.73 million. Despite these upside results — with sales and adjusted EBITDA roughly 9% above consensus — Canaccord Genuity lowered its price target on Energizer to $19 from $20 and maintained a Hold rating, citing concerns over the company’s execution.
Taken together, the analyst reactions underscore mixed views across the market: Evercore retains a constructive stance on longer-term value while other brokers are more cautious given execution risk and the persistent volatility in demand drivers.
Key points
- Evercore cut its Energizer price target to $28 from $30 but kept an Outperform rating; the stock trades below InvestingPro’s Fair Value estimate at $22.56 and is down 24.27% over the past year.
- Quarterly results are highly volatile due to weather-related demand swings and December seasonality; inventory tightening produced an 8% North American contraction, partially offset by international sales.
- Despite sales upside in fiscal Q1 2026, Canaccord Genuity trimmed its target to $19 and maintained a Hold, pointing to execution concerns even as sales and adjusted EBITDA came in about 9% above consensus estimates.
Sectors impacted: consumer goods, retail, and packaged consumer electronics and batteries.
Risks and uncertainties
- Seasonality and weather-driven demand create significant quarter-to-quarter volatility, complicating revenue visibility for consumer staples and retail channels.
- Retail inventory management and the expansion of private label batteries pose distribution and share risks, particularly for established national brands and large retailers.
- Execution risk at the company level - reflected in analyst concern despite upside results - could influence investor sentiment and near-term valuation in the consumer products space.
Analyst ratings, company results and market structure observations in this article reflect the statements and data reported by the firms cited.