Thanks to a new charger meant to extend the relatively short life of iPod batteries, Energizer could work its way to $120 a share, Cramer said.
The charger is due out in October, and like any product associated with Apple, it should get tons of press. Cramer thinks the excitement should push Energizer much, much higher.
Granted, Energizer is not an S&P 500 name like the other stocks he’s highlighting this week, but Cramer said ENR fits the theory so well he had to talk about it.
The battery business is doing well, and Energizer, with its 32% market share, is gaining on Duracell. In the high-margin specialty battery market, ENR holds a 63% share.
Energizer also has a back-up plan for its stock price. The company still has 18 million shares left in its buyback program, which will allow the company to swoop in and snatch up stock if the price drops too low.
Analysts aren’t as enthusiastic about ENR as Cramer is, though. Of the eight that cover the stock, six have a “hold” call on it and two have “sell.” Big mistake, Cramer said. The same institutional investors that pushed the stock to par should push it to $120.
Bottom Line: Not every stock that makes it to par will go to $120, but Cramer has conviction that Energizer will be one of the winners that makes it to the finish line.
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