Beiersdorf: Credit Suisse slightly cuts estimates.
(CercleFinance.com) - Reviewing Beiersdorf's first-half results, Credit Suisse has reduced its estimates for the Nivea skin cream maker, although is maintaining its target price at 88 euros, in addition to its "neutral" rating on the stock.
The broker points out that the German company's rhetoric was "clearly that it felt the underlying trends were strong" and says that if the 30 million euro of impact on sales from the cyber-attack fully reverses, then third-quarter should see close to 6% organic growth at the group's consumer division.
In this respect, Credit Suisse's 1% cut in its estimates is due FX factors.
The broker also points out that the group's cash pile is growing ever bigger, now reaching 3.8 billion euros.
Despite this, Credit Suisse says that Beiersdorf shares are currently trading at an EV/EBITDA multiple of 14x, pretty much in line with staples in general, which seems fair according to the broker.
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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 broker points out that the German company's rhetoric was "clearly that it felt the underlying trends were strong" and says that if the 30 million euro of impact on sales from the cyber-attack fully reverses, then third-quarter should see close to 6% organic growth at the group's consumer division.
In this respect, Credit Suisse's 1% cut in its estimates is due FX factors.
The broker also points out that the group's cash pile is growing ever bigger, now reaching 3.8 billion euros.
Despite this, Credit Suisse says that Beiersdorf shares are currently trading at an EV/EBITDA multiple of 14x, pretty much in line with staples in general, which seems fair according to the broker.
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.