Henkel "buy," target price raised

15.05.08 - Landesbank Rheinland Pfalz

LONDON, May 15 (newratings.com) - Analysts at Landesbank Rheinland Pfalz maintain their "buy" rating on Henkel VZ (HEN3-EUR), while raising their estimates for the company. The target price has been raised from ?32 to ?35.

In a research note published this morning, the analysts mention that although the company generated robust organic growth in 1Q, its EBIT margins were stagnant. Henkel expects to offset the impact of the rising material costs by further price hikes in the remainder of the year, Landesbank Rheinland Pfalz adds. The company?s current share price reflects the fears of a possible recession, the analysts say. The EPS estimates for 2008 and 2009 have been raised from ?2.26 to ?2.30 and from ?2.48 to ?2.51, respectively.