Energizer Holdings, the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Brian McNamara from Canaccord Genuity maintained a Hold rating on the stock and has a $29.00 price target.
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Brian McNamara has given his Hold rating due to a combination of factors related to Energizer Holdings’ recent financial activities and debt management strategies. The company announced the pricing of $400 million in senior notes and completed a $100 million add-on to an existing term loan. These actions are expected to be leverage neutral, extend the company’s debt maturity profile, and potentially reduce interest expenses.
Despite these positive steps, the company’s net leverage ratio increased slightly to 5.0x in Q3, compared to 4.9x in Q2, indicating that while progress is being made, there are still challenges to overcome. Management’s commitment to debt reduction remains strong, with a goal to reduce the net leverage ratio below 4x. These factors contribute to a cautious outlook, justifying the Hold rating as the company continues to work towards improving its financial position.