Barclays downgrades Beiersdorf on rising margin, guidance risks
BUZZ-Barclays downgrades Beiersdorf on rising margin, guidance risks ** Barclays cuts Beiersdorf BEIG.DE to "equal-weight" from "overweight", flagging guidance cut risks and saying its positioning as one of Europe’s most compelling Home and Personal Care companies is weakening
** Says the consumer goods group is shifting away from its science-led innovation edge to focus back on its core
** "Years of underinvestment in Nivea are now clearly visible, with the core brand underperforming, losing share in key markets which we now think may require a multi-year reset with no clear near-term catalyst for re-acceleration"
** Brokerage adds margin risk is increasing at an unfavourable moment, as rising costs and the need for sustained reinvestment behind Nivea limit financial flexibility and raise the likelihood of a guidance cut
** Stock down 0.4%, having fallen 25% year-to-date
** Of 24 analysts covering the stock, 9 rate it "buy" or "strong buy," 12 "hold" and 3 "sell" - LSEG data
(Reporting by Paolo Laudani in Gdansk)
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