Prudential Upgrades Energizer to 'Buy'

Analyst Constance Maneaty sees a strong outlook for Schick razor

Prudential upgraded Energizer Holdings (ENR ) to buy from hold.

Analyst Constance Maneaty says Energizer management says Schick has moved from being a "follower" in the shaving market to a "challenger," as evidenced by two new shaving launches this year. She thinks Energizer's purchase of Schick will be accretive to fiscal 2004 (Sep. ) earnings, so she raised the $2.50 fiscal 2004 earnings per share estimate to $3.00. As for fiscal 2003, barring any unforeseen charges and costs, she thinks Schick will be accretive to earnings per share before the inventory write-up.

As such, Maneaty upped the $2.32 fiscal 2003 operating earnings per share to $2.42. However, as an inventory write-up will dilute reported estimates, she cut the $2.36 fiscal 2003 reported earnings per share estimate to $1.87.

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