Energizer (ENR) shares fell 4.5% in early New York trade on Wednesday after at least three brokerage firms downgraded the rating.
Morgan Stanley downgraded the rating to Underweight, citing “lower visibility” and increased risk to the top line. RBC Capital Markets characterized the guidance for FY24 as "tepid."
The battery manufacturer previously issued full-year adjusted earnings per share guidance below consensus expectations.
“We move to UW on ENR, with limited visibility on ENR's ability to grow OSG over time, with the pricing umbrella in batteries potentially dissipating, and consumer demand risk in its semidiscretionary categories vs CPG peers,” analysts at Morgan Stanley said in the report.
Analysts at RBC moved to Sector Perform from Outperform with a price target of $38 per share.
“When combining our new (lower) estimates with ENR's recent rally, we believe the stock is now near fair value.”
Analysts at JPMorgan also cut their rating on the stock.