Energizer Holdings' (ENR) initial outlook for fiscal 2025, which is likely to be conservative, will be in the spotlight when it reports its fiscal Q4 results on Nov. 19 amid an uncertain demand backdrop, UBS said in a report sent Tuesday.

"We see a path to strong bottom line growth, but given the uncertain/volatile operating backdrop we think significant uncertainty remains around where the company will guide on the top line," the firm said.

UBS is projecting fiscal 2025 earnings of $3.58 per share, ahead of Visible Alpha/FactSet estimate of $3.53 but its organic sales growth forecast of 1.4% is slightly below consensus.

"In the context of the current environment coupled with the company's continued focus on consistent financial delivery, we would not be surprised if the initial outlook next week embedded some degree of conservatism," UBS said.

UBS expects fiscal Q4 EPS of $1.17, in line with Visible Alpha consensus and near the top end of the company's guidance range of $1.10 to $1.20.

With Energizer's shares currently trading above historical averages relative to peers, UBS said it would rather "wait for a more attractive entry point and/or greater evidence that there is further upside to our estimates before becoming constructive."

UBS maintained its neutral rating and a $33 price target on Energizer's stock.

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