Beiersdorf: Pricing Reset and Margin Pressure Leave Shares Fairly Valued, Justifying Hold Rating

Jefferies analyst David Hayes has maintained their neutral stance on 0DQ7 stock, giving a Hold rating yesterday.

David Hayes has given his Hold rating due to a combination of factors relating to Beiersdorf’s growth outlook and profitability. He expects that to restore Nivea’s competitiveness, the company will likely implement meaningful price reductions in 2026, which should help volumes and market share but at the expense of sales growth and margins. His projections now assume slightly negative like-for-like sales for Nivea next year, well below market expectations, and an operating margin that is about one percentage point lower than previously estimated. As a result, his earnings forecast for 2026 sits notably under consensus, reflecting the anticipated profit pressure from these price actions.
Despite these headwinds, Hayes recognizes that Beiersdorf’s valuation already discounts much of this tougher outlook. The implied free cash flow yield at his new price target appears fair rather than compelling, suggesting limited upside from current levels. He also sees innovation helping to stabilize performance but not fully offsetting the drag from core-brand weakness and heightened private-label competition. Together, these elements lead him to conclude that the stock is appropriately valued, justifying a neutral, or Hold, recommendation rather than a more positive or negative stance.

According to TipRanks, Hayes is a 3-star analyst with an average return of 1.5% and a 53.93% success rate. Hayes covers the Consumer Defensive sector, focusing on stocks such as Unilever, Reckitt, and Nestlé SA.

In another report released yesterday, Deutsche Bank also maintained a Hold rating on the stock with a €98.00 price target.