Edgewell Personal Care: Canaccord Genuity maintains Buy rating, lowers PT to $32.
Edgewell Personal Care (EPC) continues to face challenges in its quarterly performance, as indicated by recent earnings reports. Canaccord Genuity, a leading financial institution, has lowered its price target for EPC's stock to $32.00, while maintaining a Buy rating [2].
The company reported a 3.2% sales decline for the quarter ended June 2025, missing analyst expectations of approximately 0.9% growth. Organic sales fell 4.2% overall, with North American sales dropping 8.0% while international sales grew 2.2% [2]. These results were driven by various factors, including retailer inventory tightening, feminine care portfolio consolidation, a weak sun season, and macroeconomic pressures on consumer sentiment [2].
Despite the disappointing results, Canaccord Genuity believes that Edgewell's stock is currently undervalued. The stock is trading at approximately 7.3 times the company's fiscal year 2026 earnings estimate, which is significantly lower than its five-year average price-to-earnings ratio of approximately 12x [2]. This suggests that the stock has oversold compared to its historical valuation.
Edgewell expects organic sales to return to growth in the fourth quarter, driven by strength in its "Right to Win" portfolio and continued international growth [2]. The company's stock is currently trading at approximately 7.3 times Canaccord's fiscal year 2026 earnings estimate, which is significantly lower than its five-year average price-to-earnings ratio of approximately 12x [2].
Canaccord Genuity maintains its Buy rating despite the reduced price target, reflecting its belief in the company's long-term prospects. The firm also notes that the stock is currently in oversold territory, trading near its 52-week low of $19.13 [2].
References:
[1] https://www.sharewise.com/de/news_articles/Edgewell_Personal_Care_EPC_Misses_Q3_Earnings_and_Revenue_Estimates_Zacks_20250805_1315
[2] https://www.investing.com/news/analyst-ratings/canaccord-genuity-lowers-edgewell-personal-care-stock-price-target-on-weak-q3-93CH-4172983
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