In a report released yesterday, Gregory Lewis from BTIG maintained a Buy rating on EnerSys (ENS – Research Report), with a price target of $100.00.
Gregory Lewis has assigned a Buy rating to EnerSys’s stock based on a comprehensive analysis of the company’s financial outlook and market position. This optimistic assessment is primarily due to the updated earnings guidance provided by EnerSys, which reflects a significant increase in expected earnings per share (EPS) for FY3Q24. The revised figures are attributed to additional tax credits for which EnerSys’s products have become eligible, resulting in an enhanced annualized financial benefit estimated by BTIG to be around $120 million. Additionally, Lewis projects an increase in the company’s gross margin for the quarter, further bolstering the financial performance expectations.
In terms of valuation, EnerSys is trading at multiples that Lewis finds attractive, with a price target (PT) set at $100, based on approximately 7 times BTIG’s FY24 EBITDA estimate and around 12 times their FY24 EPS estimate. This price target suggests a potential upside from current levels, and Lewis indicates that the consensus estimates have yet to fully incorporate the guidance update, which may lead to an upward revision in the market’s expectations. The Buy rating reflects confidence in EnerSys’s improved fiscal position and a belief in the stock’s potential for growth.
In another report released yesterday, Oppenheimer also maintained a Buy rating on the stock with a $116.00 price target.
ENS’s price has also changed slightly for the past six months – from $102.130 to $99.190, which is a -2.88% drop .
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EnerSys (ENS) Company Description:
EnerSys manufactures and markets industrial batteries. It engages in stored energy solutions for industrial applications, manufactures and distributes reserve power and motive power batteries, chargers, power equipment and battery accessories to customers. The company operates its business in two primary industrial battery product lines: Motive power batteries and Reserve power batteries. The Motive power batteries, which are used to provide power for manufacturing, warehousing and other material handling equipment, primarily electric industrial forklift trucks, mining equipment, diesel locomotive starting and other rail equipment. The Reserve power batteries, which are used for backup power for the continuous operation of critical applications in telecommunications systems, uninterruptible power systems, applications for computer and computer-controlled systems, and other specialty power applications, including security systems, premium starting, lighting and ignition applications, in switchgear, electrical control systems used in electric utilities, large scale energy storage, energy pipelines, in commercial aircraft, satellites, military aircraft, submarines, ships and tactical vehicles. EnerSys was founded in October 2000 and is headquartered in Reading, PA.
Read More on ENS:
- EnerSys raises Q3 EPS view to $2.50-$2.60 from $1.80-$1.90, consensus $1.85
- EnerSys price target lowered to $112 from $128 at CL King
- EnerSys price target lowered to $110 from $112 at Oppenheimer
- EnerSys sees Q3 adjusted EPS $1.80-$1.90, consensus $1.92
- EnerSys reports Q2 adjusted EPS $1.84, consensus $1.81
