Henkel: Société Générale still a buyer.
(CercleFinance.com) - Société Générale (SG) this morning confirms its buy rating on the preference share of the German chemist Henkel, believing that the share's recent fall provides an opportunity for investors to strengthen positions.
However, SG has trimmed its 12-month target price from 153 euros to 149 euros.
Analysts believe that the group, which offers both detergents and adhesives, along with cosmetics and healthcare products, has been too heavily sanctioned on the stockmarket when it unveiled its H1 results. Admittedly, competition is fiercer in the European consumer goods sector, but nevertheless, Henkel has managed to generate organic growth similar to that of its peers, with a better trend in volumes.
In addition, "Top line should accelerate while cost savings continue to build in 2H17 Henkel is guiding for sales growth to accelerate in 2H17". In particular, as forecasts provided by Henkel's management are considered highly conservative.
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.
However, SG has trimmed its 12-month target price from 153 euros to 149 euros.
Analysts believe that the group, which offers both detergents and adhesives, along with cosmetics and healthcare products, has been too heavily sanctioned on the stockmarket when it unveiled its H1 results. Admittedly, competition is fiercer in the European consumer goods sector, but nevertheless, Henkel has managed to generate organic growth similar to that of its peers, with a better trend in volumes.
In addition, "Top line should accelerate while cost savings continue to build in 2H17 Henkel is guiding for sales growth to accelerate in 2H17". In particular, as forecasts provided by Henkel's management are considered highly conservative.
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.