In a report released yesterday, Rogerio Fujimori from Stifel Nicolaus maintained a Hold rating on Henkel AG & Co. KGaA (0IZC – Research Report), with a price target of €90.00.
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Rogerio Fujimori has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for Henkel AG & Co. KGaA. While the company shows potential with a solid sales growth projection of around 3% annually, bolstered by cost savings and strategic portfolio adjustments, there remains a level of uncertainty particularly in the Consumer Brands division. Despite improvements on the margin front, the Consumer Brands segment is still seen as needing to prove its ability to achieve positive volume growth consistently.
The valuation of Henkel’s stock also plays a role in the Hold rating. Currently trading below its historical average, the stock’s price-earnings ratios suggest limited immediate upside. While a revised price target indicates some potential for growth, the stock’s current multiple does not present a compelling case for a more bullish recommendation at this time. This balanced view keeps the rating at Hold, reflecting both the positive steps taken by Henkel and the need for further evidence of sustained growth.
In another report released on February 18, Bernstein also maintained a Hold rating on the stock with a €94.92 price target.