Analyst David Hayes of Jefferies maintained a Hold rating on Beiersdorf, reducing the price target to €101.00.
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David Hayes has given his Hold rating due to a combination of factors impacting Beiersdorf’s performance. One of the primary reasons is the ongoing weak performance of the Nivea brand, which is facing challenges in its repositioning and pricing strategies. This has led to a downward revision of the third-quarter growth forecast, indicating a continuation of the struggles seen in the previous quarter.
Additionally, while the Derma segment shows resilience, there are concerns about its potential slowdown as it laps the launch of Thiamidol. The La Prairie brand is also experiencing persistent challenges, particularly in travel retail and procedural sectors. These issues are somewhat reflected in the current stock price, but the ongoing difficulties with Nivea suggest that a cautious approach is warranted, justifying the Hold rating.
According to TipRanks, Hayes is a 2-star analyst with an average return of 1.2% and a 50.84% success rate. Hayes covers the Consumer Defensive sector, focusing on stocks such as DANONE SA, Reckitt, and Nestlé SA.
In another report released yesterday, Deutsche Bank also maintained a Hold rating on the stock with a €98.00 price target.