Henkel AG & Co. KGaA, the Consumer Goods sector company, was revisited by a Wall Street analyst today. Analyst David Hayes from Jefferies maintained a Hold rating on the stock and has a €77.00 price target.
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David Hayes has given his Hold rating due to a combination of factors influencing Henkel AG & Co. KGaA’s current position. Despite the company’s second-quarter results showing a positive trend with key metrics surpassing expectations, there are areas of concern that temper enthusiasm. The consumer volumes have decreased year-over-year, and while the operating margin has improved, the sales guidance has been reduced, albeit in line with market expectations.
Moreover, the company’s full-year margin guidance appears more optimistic, driven by cost-saving measures that are progressing faster than anticipated. However, this is not seen as a turning point for the company, but rather a gradual improvement in earnings momentum. These mixed signals suggest that while there are positive developments, they are not sufficient to warrant a more aggressive rating, thus justifying the Hold recommendation.
In another report released on July 31, TR | OpenAI – 4o also downgraded the stock to a Hold with a €74.00 price target.