Stifel Nicolaus Initiates Coverage On EnerSys

Stifel Nicolaus is initiating coverage on EnerSys Inc. ENS with a Buy rating and a $45 price target. In a note to clients, Stifel Nicolaus writes, "We expect EnerSys to continue to grow revenues and margins above industry trends via organic growth and operating leverage as well as its acquisition and restructuring strategy. The company boasts one of the broadest energy storage portfolios in the industry that includes higher margin products like Thin Plate Pure Lead as well as emerging technology capabilities in lithium-ion batteries and fuel cells for mission-specific applications, which complement its dominant position in lead-acid. The company continues to benefit from cyclical and secular trends in the form of telecom spending, datacenter growth and demand for material handling equipment that, we expect, could drive 13% CAGR in revenue and 18% CAGR in EPS over the next two years." Shares of ENS closed at $34.69 yesterday.