Metzler sees entry opportunity into Henkel, ups to 'buy'

Henkel AG & Co KgaA

20/08/2024 09:24

** Metzler Capital Markets upgrades Henkel  HNKG.DE  to
"buy" from "hold", saying the German consumer goods company's
valuation discount to peers offers a favourable entry
opportunity for investors
    ** Metzler says Henkel has managed to increase its operating
margin for several quarters now, proving that its portfolio
measures and savings from Consumer Brands merger seem to be
having a lasting effect
    ** "In­ view ­of­ short-term ­growth ­concerns ­due ­to­ a
­weakening US consumer and global macro picture, we also believe
that Henkel­ is­ well ­positioned­ in ­the ­competitive­
environment," it adds
    ** Metzler notes ­Henkel has higher European and lower U.S.
exposure relative to consumer peers and should benefit from
rising real wages and positive consumer confidence trends in
Europe
    ** Falling interest rates should also improve the prospects
of ­a revival ­in­ the ­construction ­end-­market in 2025, it
says
    ** Out of 24 analysts that cover Henkel, four rate the stock
"strong buy" or "buy", 17 "hold" and three "sell" 

 (Reporting by Bernadette Hogg)
 ((Bernadette.hogg@thomsonreuters.com))