Henkel: shares at 'rock-bottom valuation', Jefferies says

(CercleFinance.com) - Jefferies maintains its "buy" rating on Henkel, with a target price of 115 euros, saying that the German consumer goods company's shares have hit a "rock-bottom valuation.
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As the stock has been going sideways for three years, confidence has now reached a low point, while the adhesives business is materially undervalued, the broker says.

In a note sent to clients, Jefferies is calling for "more radical action to unlock value," saying share buybacks could be an immediate catalyst - but a split or sale of household personal care and cosmetics (HPC) would be "the real prize."

While acknowledging that this is not completely certain, there is enough here to keep things "interesting," the broker says.

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