Analyst Christopher Carey of Wells Fargo maintained a Buy rating on Edgewell Personal Care (EPC – Research Report), reducing the price target to $35.00.
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Christopher Carey has given his Buy rating due to a combination of factors surrounding Edgewell Personal Care’s current market position and future prospects. The company’s stock is currently trading at a significantly low valuation compared to its historical averages, yet it has potential for earnings per share (EPS) growth in the coming years. Despite some recent challenges, including slight sales declines and external pressures such as foreign exchange impacts, the company’s financial fundamentals remain sound.
Carey also notes that Edgewell’s core sales have been largely in line with expectations, although the market’s reaction has been less forgiving due to an EPS miss influenced by factors below the operating line. The company’s future outlook maintains a potential for organic sales growth, albeit modest, and there is some expected margin improvement. Furthermore, the company’s balance sheet and cash flow are expected to play a more significant role in driving EPS growth over the longer term, making it an attractive investment opportunity in the small to mid-cap space.
In another report released on February 6, RBC Capital also maintained a Buy rating on the stock with a $48.00 price target.