Henkel: Darex acquisition 'expensive,' Liberum says.

(CercleFinance.com) - Liberum maintained on Friday its "sell" rating on Henkel with a target price of 110 euros after the German consumer goods company announced a binding offer to acquire the US company Darex for 995 million euros.


In a research note, the British brokerage firm points out that Darex has been lacking organic growth in recent years, which means that Henkel will need to reignite volume growth and innovation in order to drive acceleration and regain lost market share.

"The risk is that this M&A proves expensive and dilutes group returns," Liberum warns.

However, the broker thinks that Henkel has become reliant on mergers and acquisitions in order to deliver EPS targets.

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