Henkel: RBC Capital Markets cuts rating to 'sector perform'
(CercleFinance.com) - Investment bank RBC Capital Markets said on Friday that it is downgrading its rating on German consumer goods company Henkel, while cutting its target price.
Although RBC said in a research note that it was not too concerned about the second-quarter miss in the adhesives business' results, it does however think that the deceleration in laundry and home care and beauty is "more concerning."
The Canadian bank believes high promotional and pricing pressure don't bode well for a significant rebound in the consumer business.
Consequently RBC downgraded Henkel to "sector perform" from "outperform" with a new target price of 116 euros, compared to 134 euros previously.
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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.
Although RBC said in a research note that it was not too concerned about the second-quarter miss in the adhesives business' results, it does however think that the deceleration in laundry and home care and beauty is "more concerning."
The Canadian bank believes high promotional and pricing pressure don't bode well for a significant rebound in the consumer business.
Consequently RBC downgraded Henkel to "sector perform" from "outperform" with a new target price of 116 euros, compared to 134 euros previously.
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.