Jefferies’ Paganetty Maintains Buy on Douglas as Guidance Reset and Goodwill Impairment Seen as Non-Structural, Medium-Term Upside Intact

Analyst Henrik Paganetty of Jefferies maintained a Buy rating on Douglas AG, with a price target of €12.00.

Henrik Paganetty has given his Buy rating due to a combination of factors that balance near‑term weakness with a supportive medium‑term equity story. While Q2 sales growth was modest and profitability softened versus last year and consensus, the results broadly matched Jefferies’ expectations, limiting negative surprises. He views the reset of guidance as a realistic acknowledgement of softer demand in mature markets and heightened promotional intensity, rather than a structural break in the business model.

At the same time, Paganetty sees value in Douglas’s ability to defend margins above his estimates, even in a tougher consumer environment, and considers the revised EBITDA and leverage targets as still compatible with healthy cash generation. The large goodwill impairment in France is interpreted as an accounting adjustment that cleans up the balance sheet rather than a cash drain, which supports his constructive stance. Overall, he believes the current share price more than discounts the near‑term headwinds, leaving attractive upside as execution continues and sentiment in the euro area gradually normalizes.

In another report released on May 1, Deutsche Bank also maintained a Buy rating on the stock with a €16.00 price target.