ENR - Energizer rallies after Evercore ISI defends 2021 upside

Evercore ISI looks past the negative impact on Energizer Holdings ([[ENR]] +4.1%) bottom line from the surge in battery demand during the pandemic that led to the Q3 profit miss. Analyst Robert Ottenstein: "The surge in US demand for batteries strained Energizer's supply chain to a point of turning extra Q4 sales profitless, as it required flying batteries from Asia and incurred a fine by a retailer for failing to meet its service levels (during a pandemic)." Ottenstein say the cost pressures are already abating and sees upside for the new auto care business which remains on track. On value: "ENR shares screen inexpensive even against lower earnings and we don’t believe that Energizer poses a risk of a value trap... After today's selloff, we think that ENR offers an acceptable risk-reward trade off on what seems a doable F2021 outlook (granted that EPS is backend loaded)." Evercore keeps an

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Energizer rallies after Evercore ISI defends 2021 upside