HENOF - Henkel: Mixed Progress In Q2 But Heading In Right Direction
- Henkel's Preferred shares are close to their 52-week low, having fallen another 12.7% since our initial Buy rating in June.
- Q2 results were mixed, as different cyclical factors offset each other; H1 sales were close to 2019 level but EBIT was 13% lower.
- 2021 outlook was revised down slightly, due to higher inflation, but still implies EPS growth of low-single digits to 10% in EUR.
- Progress on the turnaround is mixed, with share gains in some areas but not others, and good sales in key regions outside North America.
- With Preferred shares at €82.60, we expect a total return of 54% (13.9% annualized) by 2024 year-end. The Dividend Yield is 2.2%. Buy.
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Henkel: Mixed Progress In Q2 But Heading In Right Direction