Henkel: Deutsche Bank raises target price
(CercleFinance.com) - On Wednesday, Deutsche Bank raised its target price
for Henkel shares from E77 to E80, while noting that an increase in the share price would depend on future market share gains.
The broker - which maintains a "hold" recommendation on the stock - recognizes that the improvement in its gross margin, driven by both organic growth and acquisitions, offers the company some leeway for investors in the short term.
It also believes that the launch of new products would enable the company to return to modest volume growth, although it is concerned about what it sees as an increasingly competitive environment.
It believes that further market share gains will therefore be necessary to justify a revaluation of the share - and this across the entire product portfolio - at a time when the adhesives business is going through a "sticky" period.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
for Henkel shares from E77 to E80, while noting that an increase in the share price would depend on future market share gains.
The broker - which maintains a "hold" recommendation on the stock - recognizes that the improvement in its gross margin, driven by both organic growth and acquisitions, offers the company some leeway for investors in the short term.
It also believes that the launch of new products would enable the company to return to modest volume growth, although it is concerned about what it sees as an increasingly competitive environment.
It believes that further market share gains will therefore be necessary to justify a revaluation of the share - and this across the entire product portfolio - at a time when the adhesives business is going through a "sticky" period.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.