David Hayes, an analyst from Jefferies, maintained the Hold rating on Henkel AG & Co. KGaA. The associated price target remains the same with €78.00.
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David Hayes has given his Hold rating due to a combination of factors impacting Henkel AG & Co. KGaA’s performance. The anticipated growth driven by innovation has been postponed to the fourth quarter, as macroeconomic conditions have shown little improvement since the second quarter. Additionally, scanner data indicates a decline in performance during August and September following a relatively better July, prompting a reduction in the third quarter Group Organic Sales Growth (OSG) estimate to 1.6% and the fiscal year 2025 estimate to 1.1%.
Furthermore, the full-year margin has been adjusted downward by 10 basis points to 14.8%, primarily due to foreign exchange headwinds. There is also a need for greater clarity on the recovery of Henkel’s Consumer Brands (HCB) volume to bolster confidence in the company’s strategic realignment. These elements collectively contribute to the Hold rating, as the outlook remains cautious until more positive momentum is observed.
In another report released on September 24, UBS also maintained a Hold rating on the stock with a €75.00 price target.