Shares of battery maker Energizer Holdings (ENR) were rising Monday after receiving a rare double upgrade from analysts at Bank of America Merrill Lynch who turned bullish from bearish with an updated outlook.
The firm upgraded the stock to buy from underperform with a price target of $48, representing a 20% upside from the stock's previous closing price Friday of $40.64.
Bank of America is bullish on the company's next earnings report with analysts saying that it doesn't need a big beat to reap the benefits of a strong quarter.
"We believe expectations have been sufficiently reset with consensus FY20e EPS -13% YTD. In our view, ENR does not need an oversized beat to drive shares higher from current levels; the legacy business is solid and stabilizing acquired assets while providing incremental visibility into delivering/key challenges should offer relief," Bank of America's note said.
Energizer shares have declined about 10% year to date, but were rising 4.9% to $42.62 on Monday.