Deutsche Bank maintains a cautious outlook on European consumer staples, downgrading Beiersdorf and cutting targets for Danone and Haleon as structural channel shifts pressure earnings.
Deutsche Bank cut Beiersdorf to sell from hold with target unchanged at €70 as structural pressures mount in European consumer staples.
Deutsche Bank trimmed Danone's target to €61 from €63 and retained a sell rating due to channel shift and weak consumer spending.
Deutsche Bank cut Haleon's target to 320p from 335p and kept a sell rating amid structural pressures on consumer staples.
Deutsche Bank raised Henkel's target to €81 from €76 with a buy rating, an outlier positive view in an otherwise cautious sector.
Deutsche Bank lifted Magnum Ice Cream Company's target to €15.50 from €13.50 while retaining a hold rating.
Deutsche Bank analysts warn that European consumer staples face structural headwinds as consumer spending lags behind nominal GDP growth. The firm downgraded Beiersdorf to sell and trimmed price targets for Danone and Haleon, citing a global shift toward discount retail channels like Amazon and Costco that threatens traditional grocery and drug store margins.
The bank cites structural pressures and a global shift in consumer spending toward discount channels like Amazon and Costco, which are outpacing traditional grocery and drug store growth.
Henkel was the outlier, receiving a target price increase to €81 from €76 while maintaining a buy rating.