HENOF - Henkel: Electronics Turnaround Nicely Lifting Profits

2024-07-28 21:48:06 ET

Summary

• Henkel has exceeded our previous expectations, with stronger performance than expected in consumer.
• The higher margins adhesives segment is benefiting from a turnaround in electronics which had been under pressure these last couple of years, supporting overall margin in the outlook.
• Henkel is a little cheaper than peers. It's not a bad pick. But the value isn't deep enough for us to be interested.

Henkel ( HENKY )( HENOY )(HELKF) has outperformed our expectations. We were alright with the adhesive exposures in our last coverage , but we expected more pressure from consumers trading down, meaning shifting from Henkel's brands to competing supermarket labels or less premium brands....

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