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Investing.com - Barclays (LON:BARC) has upgraded Henkel AG (OTC:HENKY) & Co KGaA (ETR:HEN3) (OTC:HENOY) from Equalweight to Overweight and raised its price target to EUR80.00 from EUR75.00.
The upgrade comes as Barclays sees Henkel at an "interesting cross-roads" from a valuation perspective. Despite a significant consumer volume miss in Q1 due to North American destocking and pressure on professional haircare, Henkel shares only declined 0.5% on May 8, 2025, results day, while the DAX Index gained 1%.
Barclays expects consumer volumes to improve as comparisons become easier, with innovation anticipated in the second half of 2025 and reduced destocking in the U.S. market. The firm believes Henkel will likely narrow its FY25 Consumer guidance range of 1-3% organic sales growth at its H1 results.
Henkel shares have declined 20% year-to-date while the DAX Index has gained 21%. Barclays notes that FY26 consensus EPS downgrades year-to-date are only 4%, with the remaining 15% decline coming from a one-year forward P/E de-rating.
With the new price target of EUR80, Henkel would trade at 14.8x FY26 estimated P/E, still at a 10% discount to its 10-year average, according to Barclays.
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