Update shared on 08 Dec 2025
Analysts have nudged their price target on EnerSys slightly higher to approximately $144.00 per share, citing modest adjustments to the discount rate and forward valuation assumptions while leaving fair value and growth expectations largely unchanged.
What's in the News
- Management reiterated that mergers and acquisitions remain a core growth pillar, highlighting a pipeline of compelling targets and an intention to deploy capital only into high quality, high return on invested capital opportunities (Key Developments).
- EnerSys emphasized disciplined capital allocation, indicating a balance between pursuing M&A, internal investment, and opportunistic share repurchases when management views the stock as undervalued (Key Developments).
- The company completed the repurchase of 3,117,488 shares, or about 8% of shares outstanding, for $292.14 million under its November 6, 2024 buyback authorization (Key Developments).
- EnerSys also finalized the repurchase of 363,138 shares, or 0.97% of shares outstanding, for $40.89 million under a separate buyback announced on August 6, 2025 (Key Developments).
- For the third quarter of fiscal 2026, EnerSys issued guidance calling for net sales between $920 million and $960 million, indicating expectations for continued topline growth (Key Developments).
Valuation Changes
- Fair Value: Maintained at approximately $144.00 per share. This indicates no meaningful change in intrinsic value estimates.
- Discount Rate: Risen slightly from about 9.74% to roughly 9.86%. This reflects a modest increase in the required return.
- Revenue Growth: Effectively unchanged at around 2.23% annually. This signals stable top line growth expectations.
- Net Profit Margin: Essentially flat at roughly 11.68%. This indicates no material shift in long term profitability assumptions.
- Future P/E: Edged higher from about 12.28x to approximately 12.32x. This suggests a marginally richer forward earnings multiple.
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