Analyst David Hayes of Jefferies maintained a Hold rating on Henkel AG & Co. KGaA, reducing the price target to €79.00.
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David Hayes has given his Hold rating due to a combination of factors affecting Henkel AG & Co. KGaA’s financial outlook. The company’s organic sales growth forecast for 2026 has been reduced to 1.9%, which is below the consensus estimate of 2.6%. This adjustment is largely attributed to weaker consumer volumes, as the company faces heightened competition from private labels and promotional activities.
Moreover, while Henkel’s Adhesives segment remains stable, the Consumer segment is expected to experience a more challenging environment, particularly in Europe and the US. The anticipated margin expansion is likely to be limited, with prior savings no longer providing the same level of benefit. This situation necessitates increased reinvestment in innovation to counteract the slowing growth driven by pricing. Consequently, Henkel might be more inclined to explore external growth opportunities to bolster its performance.
In another report released on November 25, Bernstein also maintained a Hold rating on the stock with a €85.88 price target.