Analyst David Hayes from Jefferies maintained a Hold rating on Henkel AG & Co. KGaA and decreased the price target to €73.00 from €79.00.
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David Hayes has given his Hold rating due to a combination of factors reflecting both progress and lingering risks. He notes that the apparent acceleration in Henkel’s consumer segment growth was heavily driven by innovation-related sell-in and a disproportionate contribution from the inflationary IMEA region, raising doubts about the durability of this momentum.
At the same time, he highlights that while the hair care business is performing well, the much larger home care unit continues to struggle with volumes and market share, which jeopardizes the company’s margin aspirations, especially against a backdrop of rising oil prices. Together, these elements support a neutral stance, as clearer evidence of resilient, broad-based consumer growth is needed before a more constructive rating is warranted.
Hayes covers the Consumer Defensive sector, focusing on stocks such as DANONE SA, Nestlé SA, and Unilever. According to TipRanks, Hayes has an average return of 2.4% and a 54.75% success rate on recommended stocks.
In another report released on March 18, RBC Capital also maintained a Hold rating on the stock with a €75.00 price target.