Leifheit: Berenberg ups to "buy" on successful marketing strategy
18/05/2020 07:30
** Berenberg ups Leifheit LEIG.DE to "buy" from "hold",
citing the success of the German housekeeping accessories
maker's new advertising and product mix strategy
** Historically, the company used to focus on innovation,
but its new CEO brought more focus to marketing investments and
adjusting product range to customer demand, Berenberg says
** Leifheit's Q1 sales growth of 6.8% is its best
performance since 2016 despite store closures, suggesting early
success of the new strategy, the broker says
** Part of Leifheit's strong quarterly performance may have
also been helped by increased demand for home-cleaning products
during the coronavirus lockdown, Berenberg adds
** Leifheit should be able to return to long-term
mid-single-digit organic growth, although the coronavirus
pandemic may delay this effect until 2021-2022, the broker says
((zuzanna.szymanska@tr.com))