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The third-largest battery maker in the U.S., Rayovac (ROV) also makes flashlights, lanterns and electronic personal care products.
Since 2000, the company's sales have steadily dimmed. But Rayovac seems to finally be charging forward. Last quarter alone, sales rose 74% over the same quarter the previous year, and totaled nearly 80% of 2002's final year figure.
Merrill Lynch upgraded the stock to a "buy" rating Thursday after Rayovac issued a favorable earnings report. Analyst Chris Ferrara says the 2003 acquisition of Remington should help diversify the company's product offerings to further drive growth. He expects earnings to rise at least 15% annually over the next few years, well above the industry average.
At $24, the stock trades at 14 times Merrill's 2004 earnings estimate of $1.71 per share. Ferrara has set Rayovac's 12-month price target at $30.
--Erin Burt
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