Goldman Sachs Downgrades Henkel Stock
Goldman Sachs Lowers Henkel Rating
Investment Bank Adjusts Stock Recommendation
NEW YORK (dpa-AFX Broker) - Goldman Sachs has downgraded its rating for Henkel to "neutral" from "buy," citing concerns about the company's exposure to the consumer goods market.
The analysts noted that Henkel's adhesives and sealants business remains strong, but that the company's beauty and household care segments are facing challenges due to rising costs and competition.
Goldman Sachs also lowered its target price for Henkel to 65 euros from 75 euros, reflecting its reduced expectations for the company's earnings growth.
The downgrade comes after Henkel reported weaker-than-expected financial results for the second quarter of 2023. The company cited the ongoing inflationary pressures and the war in Ukraine as factors contributing to its disappointing performance.
Henkel's stock price fell by 2% in premarket trading following the announcement of Goldman Sachs' downgrade.
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