Berenberg says beauty market 'tougher to grow' in 2025, Beiersdorf remains 'top pick'
25/03/2025 09:40
** Berenberg expects the global beauty market growth to slow in 2025, seeing headwinds from China to continue to weigh on prestige skincare and expecting mass beauty categories to generate modest growth, driven by lower industry pricing ** In 2025, the broker expects the global beauty market to grow 3.7%, well below the four-year average of 6.9% and sees growth moderating in North America and Europe from mid-to high-single-digit levels in 2024 to 3.3% in 2025 ** It anticipates the global beauty market will return to its historical 4.5% average annual growth rate in 2026 ** Berenberg says Beiersdorf BEIG.DE, L'Oreal OREP.PA, Galderma GALD.S, Coty COTY.N and Unilever ULVR.L are its top performers in the beauty market for 2025, and views them as better positioned, more agile and possessing the greatest managerial and operational strength ** The brokerage starts coverage of Rabanne owner Puig PUIGb.MC with 'hold' with the co's operational flexibility seen as a risk, and starts Coty with 'buy', considering the upcoming investor day on June 18 as a key catalyst for the stock ** It also cuts L'Oreal to 'hold' from 'buy', as it believes the global beauty market backdrop tilts risks to the downside for the company ** Beiersdorf remains the broker's 'top pick'; Berenberg considers the co's ability to outperform its industry through its strong pipeline of breakthrough products and geographic expansion to be underappreciated
| COMPANY | RATING | OLD RATING | PT | OLD PT |
|---|---|---|---|---|
| Beiersdorf | Buy | Buy | EUR 165.00 | EUR 167.00 |
| Coty | Buy | N/A | USD 7.50 | N/A |
| Galderma | Buy | Buy | CHF 117.10 | CHF 115.40 |
| Unilever | Buy | Buy | GBP 57.50 | GBP 56.40 |
| Estée Lauder | Hold | Hold | USD 60.00 | USD 65.00 |
| Henkel | Hold | Hold | EUR 86.00 | EUR 88.00 |
| L'Oreal | Hold | Buy | EUR 385.00 | EUR 454.00 |
| Procter&Gamble | Hold | Hold | USD 157.00 | USD 165.00 |
| Puig | Hold | N/A | EUR 19.90 | N/A |