In a report released yesterday, Christopher Carey from Wells Fargo maintained a Buy rating on Edgewell Personal Care, with a price target of $23.00.
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Christopher Carey has given his Buy rating due to a combination of factors that suggest potential for future growth and financial improvement for Edgewell Personal Care. Despite a challenging fiscal year and lower-than-expected earnings guidance for FY26, there are positive signs such as increased sales and gross profit projections. The company’s decision to reset its spending on advertising and SG&A is expected to provide more flexibility in its financial model, which could lead to better performance in the future.
Additionally, the recent deal with Essity to sell the Feminine Care unit is seen as a strategic move that could enhance organic growth and help pay down debt, thereby improving the company’s financial health. The transaction is expected to be slightly dilutive to EPS but offers a good valuation and the potential for significant interest expense savings. Furthermore, the stock’s valuation appears attractive, trading at less than 10 times the expected earnings, which, combined with the prospects of improving trends and free cash flow, supports the Buy rating.
In another report released on November 11, RBC Capital also maintained a Buy rating on the stock with a $26.00 price target.