Henkel: Commerzbank cuts target price
(CercleFinance.com) - Commerzbank cut its target price for Henkel from 144 euros to 132 euros, maintaining its "buy" recommendation on the stock ahead of the German consumer goods group's first-quarter report on 9 May.
The broker expects Q1 will fall 3% year-on-year with a 0.5% organic growth more than offset by negative currency effects.
This low growth is the result of distribution issues in North America hurting consumer businesses, Commerzbank said in a research note.
However, thanks to strict cost control and synergies, the group's operating margin should increase in the first three months of the year, it added.
According to Commerzbank, sales growth should accelerate in the second half of the year and the stock is trading at an attractive valuation, prompting the broker to reiterate its "buy" rating.
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