Energizer's (ENR) fiscal Q4 organic growth is projected to remain flat, consistent with the company's expectations, RBC Capital Markets said in an earnings preview on Friday.

Scanner data indicates hurricane-driven demand boosted batteries business, potentially explaining recent stock performance, while the auto care segment faces headwinds from adverse weather and refrigerant sales shifting to fiscal Q3, according to the firm.

"Some refrigerant sales were shifted out of fiscal Q4 and into fiscal Q3, as the June heat wave in the US drove strong replenishment in the refrigerants business," the firm said.

RBC said Energizer remains under pressure due to lingering consumer demand concerns, but the worst seems to be over and some volatility is expected.

Emerging markets expansion, digital commerce growth, innovation, and new distribution opportunities will drive low single-digit growth in fiscal 2025, but holiday season performance and competitive pricing pressures remain key risks, the firm added.

The brokerage has a sector perform rating for Energizer with a price target of $38.

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