UBS cuts Douglas to 'neutral' on beauty market slowdown

Douglas AG

26/03/2025 14:06

** UBS downgrades German premium beauty retailer Douglas DOU1.DE to "neutral" from "buy," citing slower growth and a beauty market slowdown

** The brokerage notes that Douglas's lower guidance prompts a reassessment of its equity story

** "The premium beauty market isn't as resilient as anticipated and is subject to a slowdown like the broader beauty market," the broker says

** UBS expects Douglas to revise its midterm revenue growth outlook at its Q2 results release day on May 15

** It adds that lower growth and EBITDA decline mean Douglas is likely to postpone its financial leverage and dividend targets

** Out of six analysts that cover Douglas, three rate the stock "strong buy" and three rate it "buy"

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))