Henkel Stock: New Forecast for 2023

Last Updated: 23. November 2023By

The Henkel stock has added again after a weak performance in the summer months – in the past 2 weeks the paper has climbed by about 5 percent (as of November 23, around 11 am). Since the beginning of the year, there is around 9 percent plus on the price table.

Especially the raised annual forecast after the Q3 figures has pleased investors. Both in terms of revenue and EBIT margin, the Düsseldorf-based company is more optimistic than before. Investors should consider: after difficult times including the disappearing Russia business, the Henkel share is currently not very highly valued, but the challenges are not decreasing.

Henkel with decent Q3 figures The sale of the Russia business continues to affect the figures: nominally, sales in the 3rd quarter were 9 percent below the previous year’s level, but organically Henkel was able to increase sales to 5.44 billion euros, an increase of 2.8 percent. With regard to the first nine months of the year, organic sales growth was 4.1 percent.

Pleasingly from the investor’s point of view: Henkel has raised the forecast for the current year at the lower end of the range after the figures or specified it more precisely. Organic sales growth should be between 3.5 and 4.5 percent (previously 2.5 to 4.5 percent), and the EBIT margin should be between 11.5 and 12.5 percent (previously 11.0 to 12.5 percent).

Henkel stock: light and shade The necessary withdrawal from the Russia business has hit Henkel quite hard. At least this year this needs to be digested. In addition, the quarterly figures still show the problems in China – in the Asia region, sales growth was not convincing due to the challenging environment.

The majority of analysts remain cautious about the Henkel share. Of the 10 analysts who updated their forecasts this month, there is no buy recommendation – 7 recommend the stock to be held. However, investors should also bear in mind that the Henkel share has not been performing very strongly in recent years.

On a five-year basis, the Henkel share has lost around 30 percent and the all-time high from 2017 is miles away. This also creates potential for catch-up for the Henkel share. If growth accelerates and the outlook for 2024 is positive, the Henkel share should climb at the current valuation. The Henkel share remains interesting for the long-term portfolio.