Henkel: Goldman upgrades to 'buy' after underperformance
(CercleFinance.com) - Goldman Sachs has upgraded its rating on German consumer goods company Henkel from "neutral" to "buy," following the share's prolonged period of underperformance.
Their 40% underperformance versus the STOXX Europe 600 Food & Beverage index over the past two years has driven Henkel to trade at a 25% P/E discount relative to peers, Goldman pointed out.
While the broker still sees see a risk to top-line guidance in 2019, it also believes the market is already expecting the guidance to be reduced.
However, "if lower top-line guidance for full-year 2019 were to drive share price weakness at the second-quarter results, it could create an attractive entry point," it wrote in a note.
Goldman has raised its 12-month target price from 94 euros to 100 euros.
Henkel shares are currently up 2% at 91 euros.
Copyright (c) 2019 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.
Their 40% underperformance versus the STOXX Europe 600 Food & Beverage index over the past two years has driven Henkel to trade at a 25% P/E discount relative to peers, Goldman pointed out.
While the broker still sees see a risk to top-line guidance in 2019, it also believes the market is already expecting the guidance to be reduced.
However, "if lower top-line guidance for full-year 2019 were to drive share price weakness at the second-quarter results, it could create an attractive entry point," it wrote in a note.
Goldman has raised its 12-month target price from 94 euros to 100 euros.
Henkel shares are currently up 2% at 91 euros.
Copyright (c) 2019 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.