HELKF - Henkel: Tariff Risks Probably Somewhat Limited, Has European Discount
2025-02-28 06:01:04 ET
Summary
- Henkel AG delivered a solid quarter, driven by Europe's solid performance and electronics recovery driving APAC.
- The company expects continued volume growth into Q4, though we see potential risks in how electronics demand went in the holiday season and macro threats around tariffs, even if indirect.
- Henkel's valuation appears reasonable compared to 3M, with an 8.3x EV/EBITDA multiple, despite potential macroeconomic concerns and tariff risks.
- We like the discount and think that they address the US market with a considerable US manufacturing footprint. But we aren't chomping at the bit for this.
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Henkel: Tariff Risks Probably Somewhat Limited, Has European Discount