Edgewell Personal Care: Hold Rating Amid Mixed Financial Outlook and Reinvestment Year

Morgan Stanley analyst Dara Mohsenian maintained a Hold rating on Edgewell Personal Care yesterday and set a price target of $21.00.

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Dara Mohsenian has given his Hold rating due to a combination of factors impacting Edgewell Personal Care’s financial outlook. Despite a solid fourth-quarter organic sales growth that surpassed expectations, the company’s profit and earnings per share guidance for fiscal year 2026 fell short of consensus estimates. This shortfall was attributed to unexpected costs related to foreign exchange, tariffs, and the wind-down of a plant in Mexico, which negatively impacted gross and operating margins.
Furthermore, the fiscal year 2026 is anticipated to be a year of reinvestment for Edgewell, with increased spending on advertising and promotions to bolster brand equity. While international growth is expected to continue at a moderate pace and North American markets are predicted to stabilize, the overall earnings visibility remains low. The recent sale of the Feminine Care business is expected to improve growth and margins in the long term, but the immediate outlook remains cautious. As a result, Mohsenian maintains a Hold rating, awaiting clearer signs of sustained recovery in organic sales growth.

In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $19.00 price target.