Henkel Kgaa Vorzugsaktien "underweight"

01.03.07 - J.P. Morgan Securities

LONDON, March 1 (newratings.com) - Analysts at JP Morgan reiterate their "underweight" rating on Henkel Kgaa Vorzugsaktien (HEN3). The target price is set to ?95.

In a research note published this morning, the analysts mention that the company?s share price has depreciated by 11% over the last month and is expected to decline further. Henkel Kgaa Vorzugsaktien has posted 6% revenue growth for FY06, boosted by unsustainable pricing, the analysts say. The company?s cash flows and margins were driven by onetime items. Henkel Kgaa Vorzugsaktien is unlikely to be able to report significant margin expansion going forward, JP Morgan adds.