NEW YORK (TheStreet) -- Energizer Holdings (ENR) shares are up 2.67% to $128.47 in early market trading on Friday despite the battery maker's stock being downgraded to "market perform" from "outperform" by analysts at Wells Fargo today.
The downgrade comes a day after Warren Buffett's Berkshire Hathaway (BRK.B) purchased Energizer's rival Duracell for $4.7 billion from consumer product manufacturer Procter & Gamble (PG) .
The firm believes that the $4.7 billion deal implies a lower valuation for Energizer, not a higher one, and in turn lowered their outlook on the stock's performance.
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TheStreet Ratings team rates ENERGIZER HOLDINGS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENERGIZER HOLDINGS INC (ENR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: