Beiersdorf: UBS no longer a seller.
(CercleFinance.com) - According to UBS, investors should stop selling the share of the German group Beiersdorf, with their analysts upgrading the stock to “neutral” this morning.
Although not taking a more aggressive stance yet, they have increased their target price from 83 euros to 93 euros, in line with the current share price.
Over the long term, UBS has not changed its opinion on the parent company of Nivea and Tesa. For it to remain competitive, Beiersdorf will have to "significantly" increase its investments in emerging markets, digital and be more innovative.
However, Kraft Heinz's failure to acquire Unilever should lead to streamlining of advertising expenditure. Beiersdorf will therefore have to improve its margins in the near term and maintain its competitiveness. For this reason, the group's operating margin could pleasantly surprise over the next 12 months: UBS no longer expects an annual 40 basis point improvement by 2020, but rather a better 60 basis point increase.
Copyright (c) 2017 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.
Although not taking a more aggressive stance yet, they have increased their target price from 83 euros to 93 euros, in line with the current share price.
Over the long term, UBS has not changed its opinion on the parent company of Nivea and Tesa. For it to remain competitive, Beiersdorf will have to "significantly" increase its investments in emerging markets, digital and be more innovative.
However, Kraft Heinz's failure to acquire Unilever should lead to streamlining of advertising expenditure. Beiersdorf will therefore have to improve its margins in the near term and maintain its competitiveness. For this reason, the group's operating margin could pleasantly surprise over the next 12 months: UBS no longer expects an annual 40 basis point improvement by 2020, but rather a better 60 basis point increase.
Copyright (c) 2017 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.