Henkel: Liberum still a buyer, despite results
(CercleFinance.com) - Liberum maintains its "buy" recommendation on the Henkel stock, along with its target price of 98 euros, despite the group's publication of quarterly results that fell below expectations and a reduction of its FY targets, against the backdrop of more difficult market conditions.
The group notes that while its adjusted operating margin declined in line with expectations (-1.5 point to 16.5%) in the second quarter, sales fell 0.4% in organic terms, while the consensus was expecting them to rise by 0.3%.
"Henkel trades on a cal'20E PE of 15.7x, providing a FCF yield of 6.3% and offers a 2.2% dividend yield," the broker also points out in its research note.
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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 group notes that while its adjusted operating margin declined in line with expectations (-1.5 point to 16.5%) in the second quarter, sales fell 0.4% in organic terms, while the consensus was expecting them to rise by 0.3%.
"Henkel trades on a cal'20E PE of 15.7x, providing a FCF yield of 6.3% and offers a 2.2% dividend yield," the broker also points out in its research note.
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.