What Does the Smart Money Think of These Companies That Could Potentially Merge?

In EnerSys’ (NYSE:ENS) case, the company’s fundamentals are decent. EnerSys is the world’s largest industrial battery company with a 22% market share in a $9.8 billion market in 2014. It has 10,000 large customers in over 100 countries and has a well-positioned cost structure to handle any global business downturn. The battery market will grow at a fast rate in the future, with analysts forecasting Enersys’ EPS to grow by an average of 16% a year for the next five years. Enersys trades at a reasonable forward P/E of 13.9 and PEG of 1.05.

While analysts are bullish on Enersys growth, they are not as bullish on its stock price. Two analysts have ‘Buy’ ratings and three have ‘Hold’ ratings, with a consensus price target of $59 per share between them.

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