Christopher Carey, an analyst from Wells Fargo, maintained the Buy rating on Edgewell Personal Care (EPC – Research Report). The associated price target remains the same with $43.00.
Christopher Carey has given his Buy rating due to a combination of factors including Edgewell Personal Care’s recent improvement in gross margins and a conservative yet promising financial guidance. Despite facing an inflationary cycle with significant impacts on gross margins and earnings per share in previous fiscal years, the company has demonstrated a consistent recovery with four consecutive quarters of gross margin expansion. This consistent improvement, alongside a raised earnings guidance reflecting better than expected margins, underpins the optimism in the company’s financial performance.
Moreover, Carey acknowledges the revenue miss but considers the revenue guidance for the second half of the year achievable, albeit challenging. The rating also takes into account the potential for enhanced margins as the company continues to improve its execution amidst stabilizing costs. Additionally, the assessment of the stock as undervalued compared to its potential earnings adds to the rationale behind the Buy rating. Carey’s adjustment of the fiscal year earnings estimates upwards further reinforces the positive outlook on Edgewell Personal Care despite the hurdles faced in sales performance.
In another report released on May 1, RBC Capital also maintained a Buy rating on the stock with a $53.00 price target.
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Edgewell Personal Care (EPC) Company Description:
Edgewell Personal Care Co. is engaged in manufacturing and marketing of personal care products. It operates through the following business segments: Wet Shave, Sun and Skin Care, Feminine Care, and All Other. The Wet Shave segment includes razor handle and refillable blades, disposable shave products, and shave gels and creams. The Sun and Skin segment comprises of Banana Boat, Hawaiian Tropic, and Wet Ones brands. The Feminine Care segment consists of tampons, pads and liners sold under the Playtex, Stayfree, Carefree, and o.b brands. The All Other segment refers to infant care products, such as bottles, cups, and pacifiers, under the Playtex, OrthoPro and Binky brand names, as well as the Diaper Genie, and Litter Genie disposal systems. The company was founded on September 23, 1999 and is headquartered in Shelton, CT.
