Energizer: Trading Below Its Historical Valuation

Energizer Holdings is rated a buy, trading at 5.94x forward earnings versus its 5-year average of 9.20x. I expect ENR to re-rate as the market stops pricing in permanent impairment, supported by raised FY26 guidance and a clear path to low-40s gross margin by Q4. My probability-weighted target is $27 (+34%), with limited downside near $19.80, as trough multiples are already priced in. Key risks include missing Q4 gross margin targets and continued organic volume declines, which could shift base to bear case outcomes.

Energizer Holdings, Inc. ( ENR ) is a global manufacturer headquartered in St. Louis. It manufactures, markets and distributes majorly through two segments: Batteries and Lights ((B&L)) and Auto Care. The B&L segment constitutes roughly 73% of the sales and batteries are the