ENR - Energizer Holdings sees ratings cut at Morgan Stanley due to macro F/X backdrop

Morgan Stanley lowered its rating on Energizer Holdings ( NYSE: ENR ) to Equal-weight from Overweight on the expectation that negative EPS revisions could be on the way and with ENR's macro risks exacerbated by high leverage.

Analyst Dara Mohesenian views ENR as fairly valued in light of greater macro sensitivity than the firm's overall staples coverage due to its semi-discretionary portfolio and muted long-term growth in batteries. "While we expect a continued constructive pricing environment in batteries due to the consolidated industry structure, revenue upside is likely to be constrained by unfavorable FX,' he noted.

Mohesenian also see little room for further catalysts for ENR amid the macro and F/X backdrop.

Morgan Stanley has a price target of $35 on Energizer ( ENR ). Shares of ENR slipped 0.78% to $30.55 in premarket trading on Wednesday.

The Seeking Alpha Quant Rating on ENR has been at Hold for most of the year.

Dig into the Energizer Holdings ( ENR ) Q2 earnings call transcript.

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