HELKF - Henkel: Shares Down 25% Since June Low-Teens Annualized Returns On Forecasts
- Henkel's Preferred Stock has fallen 25% since June and is now just 9% above its 5-year low in March 2020. The Dividend Yield is 2.6%.
- Q3 results were mixed due to COVID-related demand volatility and cost inflation, and 2021 outlook was cut to the low end of the prior range.
- Adhesives Technologies again showed strong growth, Laundry & Home Care had a solid performance, but Beauty Care sales fell.
- While we still believe Henkel's turnaround will succeed, we are reducing our EPS growth and P/E assumptions to reflect more uncertainty.
- With shares at €70.74, we expect a total return of 44% (13.0% annualized) by 2024 year-end, in just over three years. Buy.
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Henkel: Shares Down 25% Since June, Low-Teens Annualized Returns On Forecasts