Cautious Outlook on Beiersdorf: Hold Rating Amidst Sluggish Sales and Profit Margin Concerns

In a report released today, David Hayes from Jefferies maintained a Hold rating on Beiersdorf, with a price target of €101.00.

David Hayes has given his Hold rating due to a combination of factors impacting Beiersdorf’s performance. The recent third-quarter results highlighted a slowdown in organic sales growth, which fell short of both Jefferies’ estimates and market consensus. This underperformance was largely attributed to the brand’s heavy reliance on innovation to drive growth, which has not been sufficient to offset weaknesses in its core product offerings.
Furthermore, Hayes suggests that a price adjustment might be necessary to enhance competitiveness, posing a potential risk to future profit margins. The uneven sales performance, particularly with Nivea’s fluctuating sales figures in the latter half of the year, adds to the uncertainty. These elements collectively contribute to the decision to maintain a Hold rating, reflecting a cautious outlook on the stock’s near-term potential.

Hayes covers the Consumer Defensive sector, focusing on stocks such as Nestlé SA, Unilever, and DANONE SA. According to TipRanks, Hayes has an average return of 1.1% and a 50.81% success rate on recommended stocks.