Henkel KGaA’s price target was modestly raised to €81.80 as analysts cited resolved U.S. destocking, margin outperformance, and an improving adhesives outlook, partially offset by ongoing volume challenges in the consumer segment.
Analyst Commentary
- Bullish analysts highlight that Henkel's consumer brands segment has moved past its most significant challenges, with U.S. destocking headwinds now largely resolved.
- The macroeconomic outlook for Henkel's adhesives division is improving, contributing to expectations for a stock re-rating from depressed valuation levels.
- Operating margin recovery has outperformed expectations, supporting increased full-year guidance for FY25 and prompting modest upward price target adjustments.
- Persistent volume contraction in the Consumer business remains a concern, tempering some optimism despite better margin performance.
- Analysts note a shift from the company’s organic growth trough, with broader consumer staples sector dynamics and adaptation to new industry paradigms affecting successive upgrades and slightly higher price targets.
What's in the News
- RBC Capital has lowered its price target for Henkel shares to EUR 78 from EUR 80 while maintaining a Sector Perform rating (Periodicals).
- Henkel has revised its 2025 organic sales growth guidance to 1.0%-2.0%, down from the previous range of 1.5%-3.5% (Key Developments).
- The lower price target by RBC Capital may reflect cautious sentiment following Henkel’s revised guidance (Periodicals, Key Developments).
- The new guidance indicates a more conservative outlook for growth in 2025 (Key Developments).
- Investors are likely to monitor Henkel’s ability to meet its updated targets amid moderated expectations (Periodicals, Key Developments).
Valuation Changes
Summary of Valuation Changes for Henkel KGaA
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from €81.02 to €81.80.
- The Consensus Revenue Growth forecasts for Henkel KGaA has fallen from 1.5% per annum to 1.4% per annum.
- The Future P/E for Henkel KGaA has risen slightly from 16.75x to 17.24x.
Disclaimer
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