Energizer Holdings Shares Fall On Downgrade

NEW YORK (AP) — Shares of battery maker Energizer Holdings, Inc. dipped Monday after an analyst downgraded the stock, citing challenges ahead for the company's brands at major retailers like Wal-Mart and Home Depot.

Nik Modi of UBS lowered his rating for Energizer Holdings — which makes products like Energizer batteries, Playtex personal care products and Schick razors — to "Sell" from "Neutral."

However, he raised his price target for the stock from $40 to $53, noting a recent rally driven by factors like favorable foreign exchange rates.

Energizer shares are up 6.4 percent in the year to date and have rallied 53 percent since March 6, when the stock traded at $37.57.

But he advised investors to cash in on the gains, noting factors that could soon weigh on the stock. That includes weakness in the overall battery market, competition with rival consumer product make Proctor & Gamble, and potential problems selling at big retail outlets.

Shares of St. Louis-based Energizer Holdings fell $3.62, or 6.3 percent, to $53.98 in afternoon trading.