Henkel "underweight," estimates reduced

03.08.07 - J.P. Morgan Securities

LONDON, August 3 (newratings.com) - Analysts at JP Morgan maintain their "underweight" rating on Henkel KGAA (HEN3), while reducing their estimates for the company. The target price is set to ?37.

In a research note published this morning, the analysts mention that the company?s sales growth has decelerated to 4.3% in 2Q07. Henkel has raised its l-f-l sales growth guidance for FY07 from 3%-4% to 4%-5%, short of the reduced estimates. The company is likely to face challenges going forward due to increased input costs, the analysts say. The EPS estimates for 2007 and 2008 have been reduced from ?2.16 to ?2.10 and from ?2.47 to ?2.40, respectively.