NEW YORK (TheStreet) -- Shares of Energizer Holdings Inc  (ENR - Get Report) are down 0.88% to $137.69 in mid-morning trading Thursday, after analysts at Morgan Stanley downgraded the battery company earlier today.

The firm lowered its rating on shares of Energizer to "equal weight" from "overweight", following its outperformance and multiple expansion over the last few quarters.

The firm also reduced its price target to $140 from $146, citing negative foreign exchange impacts and lower EBITDA estimates.

St. Louis-based Energizer is the manufacturer and marketer of primary batteries, portable lighting and personal care products in the wet shave, skin care, feminine care and infant care categories.

The company manufactures and sells products in six product categories including wet shave, skin care, feminine care, infant care, battery and portable lighting products.

Separately, TheStreet Ratings team rates ENERGIZER HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ENERGIZER HOLDINGS INC (ENR) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its 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:

  • The gross profit margin for ENERGIZER HOLDINGS INC is rather high; currently it is at 52.96%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -8.77% is in-line with the industry average.
  • Compared to its closing price of one year ago, ENR's share price has jumped by 26.33%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.0%. Since the same quarter one year prior, revenues slightly dropped by 5.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Even though the current debt-to-equity ratio is 1.03, it is still below the industry average, suggesting that this level of debt is acceptable within the Household Products industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.03 is sturdy.
  • ENERGIZER HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, ENERGIZER HOLDINGS INC reported lower earnings of $5.67 versus $6.46 in the prior year. This year, the market expects an improvement in earnings ($6.98 versus $5.67).
  • You can view the full analysis from the report here: ENR Ratings Report