Beiersdorf: Berenberg upgrades to buy

(CercleFinance.com) - On Wednesday Berenberg has upgraded its rating on Beiersdorf shares from "hold" to "buy", having increased its corresponding target price from 92 euros to 114 euros (current price: just short of 100 euros, up almost 3%).


The German private bank said in research comments that the maker of Nivea cream is poised for a "brilliant" recovery in 2021.

"Our investment thesis is based on potential positive earnings surprises of 10% in 2021 on the back of a stronger-than-expected organic sales growth and undemanding operating margin expectations," its analysts say.

The investment bank - whose new target price represents upside potential of 18% - also considers that the stock is trading at an attractive valuation given its short- and medium-term growth profile.


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