Telecom Woes Hit EnerSys Hard, Analyst Downgrades Stock
Portfolio Pulse from Lekha Gupta
Oppenheimer analyst Noah Kaye downgraded EnerSys (NYSE:ENS) to Perform from Outperform and removed the $113 price target due to a Q3 FY24 revenue miss and lower than expected Q4 FY24 guidance. The downgrade follows a reported adjusted EPS of $2.56, above estimates, but sales of $861.50 million fell short of the $898.87 million consensus. EnerSys' guidance for Q4 adjusted EPS is also below estimates. The telecom/broadband slowdown impacted multiple segments, with recovery expected in the second half of 2024.
February 09, 2024 | 7:05 pm
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EnerSys was downgraded by Oppenheimer to Perform from Outperform with no new price target, following a Q3 FY24 revenue miss and disappointing Q4 FY24 guidance.
The downgrade by a prominent analyst due to a revenue miss and lower future guidance directly impacts investor sentiment and could lead to a short-term decrease in stock price. The telecom sector's slowdown affecting EnerSys' performance further exacerbates concerns, making a negative short-term impact on the stock price likely.
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IMPORTANCE 90
RELEVANCE 100