Henkel reinitiated with "peer perform"

10.09.07 - Bear Stearns

LONDON, September 10 (newratings.com) - Analyst Simon Marshall-Lockyer of Bear Stearns reinitiates coverage of Henkel (HEN3-EUR) with a "peer perform" rating.

In a research note published this morning, the analyst mentions that the company is acquiring ICI?s Adhesives & Electronic Materials business for ?3.97 billion, which could be dilutive to the EPS and value destructive. The analyst believes that Henkel would be able to generate 100bp underlying organic growth annually going ahead. Bear Stearns adds, however, that the company would find it difficult to meet its target of achieving 12% EBIT margins by next year.