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Investing.com - Deutsche Bank (ETR:DBKGn) raised its price target on Henkel AG (OTC:HENKY) & Co KGaA (ETR:HEN3) (OTC:HENOY) to EUR81.00 from EUR80.00 while maintaining a Buy rating on Monday.
The investment bank views Henkel as a "show me" story currently, noting that the company needs to earn back its multiple "the hard way" following self-induced volume misses at the turn of the year. InvestingPro data reveals the company’s financial strength, with a perfect Piotroski Score of 9 and a 31-year track record of consistent dividend payments.
Deutsche Bank believes there is opportunity in Henkel shares, which it says are currently priced as if expecting 10-15% earnings cuts, and have historically rallied by the time forecast sales declines implied by consensus materialize. With 8 additional exclusive insights available on InvestingPro, investors can access deeper analysis of Henkel’s value proposition.
The bank increased its FY25E EPS estimate by 4.2% and its FY26E EPS estimate by 2.3%, positioning its forecast 2% above consensus for FY25 and 2% below consensus for FY26.
Deutsche Bank expects an improving second-half top line, albeit moderately, which it believes will likely move the stock higher from what it describes as "all time P/E relative lows vs the market."
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