Prudential Ups Playtex Products to Overweight
Prudential upgraded Playtex Products (PYX) to overweight from neutral, citing the stock's 24% pullback in price year to date and earnings growth outlook.
Analyst Constance Maneaty says the company's earnings per share (EPS) growth outlook is at the upper end of consumer product companies. She says the management took positive steps such as reversing years of Playtex profit declines, strengthening new product flow, selling off miscellaneous brands, paying down debt of $156 million, and strengthening the board. She believes the company is positioned for better growth than it has had at any time in its public history. She sees 48 cents 2006 EPS and 60 cents EPS in 2007. She raises her $12 stock price target to $14.