NEW YORK ( TheStreet) -- Shares of Energizer ( ENR) have been popping after the stock was upgraded by UBS analysts to buy from neutral.

The stock has risen 2.1% to $54.94 in midday trading.

Their 12-month price target for the stock is $63.

"Over the past two years, we have held a cautious stance on Energizer due to concerns over A&P (advertising and promotion) spending levels, pressure on the battery category, lack of buy backs, and its significant overlap with P&G ( PG)," UBS analyst Nik Modi wrote in an equity research report released on Wednesday.

But "with Energizer shares underperforming staples by 2,000 bps (basis points) over the past two years and its valuation discount widening vs. its HPC (household and personal care) peers, we believe expectations have been more than recalibrated."

Modi said that as sentiment for the stock bottoms, he and his team see three possible positive dialogue developments on the horizon in the coming months that can jumpstart the stock: upbeat commentary on the new Schick Hydro razor brands, positive news on the U.S. battery category and the communication of meaningful cost-saving initiatives.

Furthermore, the analysts said that Energizer could generated an incremental $2 a share by 2015 if the company is able to narrow its profit and employee gap with smaller rival Alberto Culver ( ACV).

-- Reported by Andrea Tse in New York

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