Henkel AG & Co. KGaA: Hold Rating Amid Volume Growth Concerns and High Headline Risks

Henkel AG & Co. KGaA (0IZC – Research Report), the Consumer Defensive 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 €80.00 price target.

David Hayes has given his Hold rating due to a combination of factors affecting Henkel AG & Co. KGaA. The company’s recent quarterly results showed a miss in volume growth, which overshadowed the fact that sales were in line with expectations and the full-year guidance was reiterated. This volume miss is particularly concerning in the Consumer segment, where the strategy relies on volume growth to support aggressive pricing, a dynamic that has not yet materialized.
Furthermore, the high headline risk associated with uncertainties in the Adhesives segment and slowing demand in the Consumer segment adds to the cautious outlook. While pricing strategies have managed to sustain sales growth, the lack of volume growth poses a challenge. As a result, Henkel might underperform compared to its peers, prompting a Hold rating from David Hayes.

In another report released today, RBC Capital also maintained a Hold rating on the stock with a €80.00 price target.