Deutsche Bank Lowers Price Target On Energizer Follow Meeting With Management

Deutsche Bank recently met with Energizer ENR CEO, CFO and VP of IR to discuss battery category trends, Schick Hydro launch, the recently accounted restructuring program and management's incentive compensation structure, among other topics. Overall, the tone of the meeting was positive, with the company cautiously optimistic about the ability to take price in the battery category and satisfied with the success of the Schick Hydro launch. Deutsche Bank is lowering its F1Q11 EPS estimate to $1.78 from $1.97 to account for higher than previously expected A&P spend in conjunction with the company's efforts to drive trial of Hydro. Deutsche Bank has also included the impact of the ASR acquisition in its model going forward, which boosts FY11 EPS to $6.16 from $5.83 despite lower 1Q11 EPS and higher A&P pressuring the bottom line in 2Q11 and 3Q11 as well. ENR is trading at $68.96