EnerSys is a “Top Pick” for 2026, this analyst says

Roth Capital Markets analyst Chip Moore reiterated his “Buy” rating on EnerSys and raised his 12-month target to US$164.00 from US$150.00 in a Dec. 9 report, calling the Reading, Pa.–based industrial energy storage supplier one of his “top picks into 2026.”

EnerSys provides batteries and integrated power systems used in telecommunications, data centres, material handling, transportation, aerospace and defence.

Moore said the firm’s positioning across electrification, automation and digitization trends remains “underappreciated,” with mix shift, scale benefits and ongoing operational initiatives supporting accelerating profitability.

“We see additional upside from excess capital, including organic investment, Li-ion efforts, buyback, and potential M&A,” he said.

He expects EnerSys to benefit from renewed investment in communications networks and continued data-centre expansion.

“Specifically, we see a growing need for power-resiliency solutions across all types of communications networks … a strong upside opportunity for EnerSys, in our view.”

Moore also pointed to favourable defence-market momentum and the firm’s role as a major U.S. government battery supplier, including the potential for dedicated, de-risked lithium-ion production.

EnerSys is targeting roughly US$80-million in annualized productivity savings ramping through the back half of fiscal 2026, with further efficiency gains likely, Moore said. He views management’s volume assumptions as conservative, adding that replacement-driven demand in material handling and trucking should help cushion cyclical softness until macro conditions improve.

Moore highlighted strong cash generation supported by finalized U.S. 45X clean-energy manufacturing credits, modest leverage (1.3× net debt/EBITDA), and nearly US$1-billion of remaining buyback authorization providing discipline around potential acquisitions. He sees multiple catalysts emerging in 2026, including greater investor recognition of EnerSys’s data-centre opportunity, progress on Li-ion initiatives backed by a US$200-million federal grant, and a June investor day.

His US$164.00 price target is based on ~11× CY26 adjusted EBITDA, or ~14× adjusted EPS, a valuation still below prior-cycle peaks. Shares trade at roughly 10× his CY26 EBITDA forecast.

“We see potential for upside to our forecasts, as we believe our volume assumptions are conservative,” he said.

Moore forecasts US$569.6-million in Adjusted EBITDA on US$3.75-billion of revenue in fiscal 2026, rising to US$670-million on US$3.82-billion in fiscal 2027.

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