Henkel Kgaa "buy," target price raised

04.05.06 - Deutsche Bank

LONDON, May 4 (newratings.com) - Analyst Harold Thompson of Deutsche Bank maintains his "buy" rating on Henkel Kgaa (HEN3-EUR). The target price has been raised from ?100 to ?110.

In a research note published this morning, the analyst mentions that the company has reported record organic sales growth for 1Q06, but with flat margins. Henkel?s five-year trend of meeting or exceeding sales growth expectations is likely to continue this year, the analyst says. The company?s gross and underlying EBIT margins are likely to expand on a FY basis, Deutsche Bank adds.