Henkel Kgaa-vorzug "underweight"

03.08.06 - J.P. Morgan Securities

LONDON, August 3 (newratings.com) - Analysts at JP Morgan maintain their "underweight" rating on Henkel Kgaa-vorzug (HEN3-EUR). The target price is set to ?80.

In a research note published this morning, the analysts mention that the company has posted its previous quarter?s organic growth ahead of the estimates primarily on account of favourable pricing trends, which are unlikely to be sustainable over the long-term. Henkel Kgaa-vorzug has the ability to attain EBITA and EPS growth target of 10% for FY06, driven by investment of the gains accrued from disposals, the analysts add.