Henkel initiated with "hold"

30.01.06 - ING Financial Markets

LONDON, January 30 (newratings.com) - Analysts at ING Financial Markets initiate coverage of Henkel (HEN3-EUR) with a "hold" rating. The 12-month target price is set to ?93.

In a research note published this morning, the analysts mention that although Henkel is likely to achieve its sales targets in 4Q05 and 2006, its margin growth is expected to be adversely impacted by continuing pressures in the adhesives market and stiff competition in the Home Care and Cosmetics segments in Europe. Henkel is unlikely to achieve its EBITA margins guidance of 12% by 2008, the analysts say.