Gabelli Rates Energizer At Buy (ENR)

Gabelli & Co. has a Buy rating on shares of Energizer Holdings, Inc. ENR. In a note to investors, Gabelli writes, "This is an investment year, as Energizer is increasing marketing behind the introduction of its new shaving system, Hydro and spending on new technology and market expansion for batteries. In addition, management anticipates spending $65-85 mm to rationalize battery production. The acquisition of American Safety Razor strengthens Schick's position across more price points within the shaving category and enhances its global presence. We estimate ASR will generate $250 mm of annual revenue, while Energizer should generate cost synergies of at least $10 mm with longer-term potential to extract both revenue and cost synergies. We calculate a PMV of $95 based on FY2012 estimates (7x EBITDA household and 9x personal care), rising to $135 in 2015." Shares of ENR closed at $69.52 yesterday.