Why Are Battery Manufacturing Company EnerSys Shares Shooting Higher Today?
Portfolio Pulse from Shivani Kumaresan
EnerSys (NYSE:ENS) shares surged after raising its Q3 fiscal 2024 adjusted EPS guidance from $1.80-$1.90 to $2.50-$2.60, following the U.S. Treasury's proposed regulations on tax credits for battery manufacturing. The company now anticipates annual tax credits of $120M-$160M, up from the previous $80M-$120M estimate. Oppenheimer analyst Noah Kaye reaffirmed an Outperform rating and increased the price target from $110 to $116. ENS stock rose 5.15% to $101.73.
December 20, 2023 | 6:37 pm
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POSITIVE IMPACT
EnerSys shares climbed after the company increased its Q3 fiscal 2024 EPS guidance and expects higher annual tax credits due to new U.S. Treasury regulations. Oppenheimer analyst raised the price target to $116.
The positive revision in EnerSys's EPS guidance and the increase in expected annual tax credits due to the new Treasury regulations are significant factors likely to boost investor confidence and drive the stock price up in the short term. The analyst's rating and raised price target further support the positive outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100