Henkel "underweight," target price raised

03.05.07 - J.P. Morgan Securities

LONDON, May 3 (newratings.com) - Analysts at JP Morgan maintain their "underweight" rating on Henkel (HEN3). The target price has been raised from ?95 to ?112.

In a research note published this morning, the analysts mention that the company has reported its top-line significantly ahead of expectations and net income in-line with the consensus for 1Q07. JP Morgan expects strong momentum in the emerging markets to boost Henkel?s top-line growth going forward. The upward revision in the target price reflects expansion of multiples in the sector. The analysts view the company?s top-line guidance as highly conservative.