S&P 500 eases slightly from fresh record high after stronger economic growth
Investing.com - Berenberg downgraded Hornbach Holding AG (ETR:HBH:GR) from Buy to Hold on Wednesday, while raising its price target to EUR105.00 from EUR100.00.
The German DIY retailer’s shares have risen approximately 34% year-to-date, prompting the research firm to reassess its rating despite maintaining a positive view on the company’s fundamentals.
Berenberg indicated that Hornbach’s current valuation appears less compelling given its projected 2025-27E earnings per share compound annual growth rate of just 1.7%, which falls significantly below the 8.7% to 44% growth rates expected from industry peers.
The stock now trades at approximately 17% premium to its five-year historical next-12-months price-to-earnings ratio, and at about 10 times 2026E P/E, representing a 15% discount compared to its peer group.
Berenberg still considers Hornbach "one of the most attractive European do-it-yourself stocks" and expects the company to continue gaining market share, but concluded the current share price doesn’t offer sufficient upside potential to maintain a Buy recommendation.
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