Edgewell Personal Care Declines After Jefferies Downgrades Stockby
Edgewell Personal Care Co. suffered its worst stock decline in almost three months after Jefferies Group downgraded the maker of Schick razors and Banana Boat sunscreen, saying the company seems to have lost its luster as a buyout candidate.
Comments from Edgewell’s chief executive officer -- along with his move last month to assume the chairman role -- suggest that the company may not be an imminent acquisition target, Jefferies analyst Kevin Grundy said in a report. That undercuts the attractiveness of the stock, said Grundy, who lowered his rating on Edgewell to hold from a buy recommendation.
CEO David Hatfield has reiterated that Edgewell “remains ‘committed to delivering value to shareholders’ with ‘no change in that regard’ when asked about a potential sale,” Grundy noted in his report. Though Edgewell still could be a takeover target for multinational companies, “we now view this as less certain in the near term,” he said.
Edgewell fell as much as 4.4 percent to $78.70 in New York on Tuesday, the biggest intraday decline since Feb. 8. Prior to the tumble, the shares were up 5 percent this year.