Beiersdorf: Jefferies downgrades rating

(CercleFinance.com) - Broker Jefferies has downgraded its rating on the Beiersdorf share from "hold" to "underperform," although it has raised its corresponding target price from 90 euros to 96.
5 euros, saying "We see downside risk to growth estimates, in the context of a valuation that has expanded sharply relative to peers".

"H1 momentum is strong and new leadership are addressing identified challenges. But there is a lot to do, in the context of BEI's small scale and growth investment that is proving to be less incremental than either we or the market thought," the broker believes.

In addition, Jefferies considers that the growth of the German cosmetics supplier "is heavily dependent on La Prairie, whose continued outperformance can't be guaranteed."


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