UBS Keeps Beiersdorf at 'Sell' - Target EUR 111
Analyst maintains cautious stance on Beiersdorf
UBS analyst Guillaume Delmas reiterated his 'sell' rating on Beiersdorf AG, a German personal care company, with a target price of EUR 111, implying a downside of around 19% from the current market price.
Growth concerns in key markets
Delmas cited concerns over the company's growth prospects in key markets, particularly in Europe and the United States, where he anticipates a slowdown in consumer spending. The analyst also highlighted the competitive landscape, with Beiersdorf facing intense competition from both established players and emerging brands.
Premium pricing strategy under pressure
Delmas expressed skepticism towards Beiersdorf's premium pricing strategy, noting that consumers are increasingly seeking value-for-money options. He believes that the company may face challenges in maintaining its price premium in the face of competition and rising cost pressures.
Valuation concerns
The analyst also raised concerns about Beiersdorf's valuation, stating that the company's shares are trading at a premium to its peers and that the current market price does not reflect the challenges it faces.
Focus on cost-cutting and innovation
Delmas urged Beiersdorf to focus on cost-cutting initiatives and innovation to improve its profitability and competitiveness. He believes that the company needs to streamline its operations and invest in new products and technologies to regain its growth momentum.
Long-term outlook remains uncertain
Delmas acknowledged that Beiersdorf has a strong brand portfolio and a global presence, but he expressed uncertainty about the company's long-term outlook. He believes that the company faces significant challenges in its key markets and that its premium pricing strategy may become unsustainable in the current economic environment.
Disclaimer
The information contained in this article is for informational purposes only and should not be construed as investment advice. Investors should conduct their own research and consult with qualified professionals before making any investment decisions.
