On Wednesday, investment firm Jefferies updated its financial outlook for Beiersdorf AG (ETR:BEIG) (BEI:GR) (OTC: BDRFY), increasing the price target to EUR155.00 from a previous EUR152.00. The firm retains a Buy rating on the stock.
The adjustment follows Beiersdorf's solid performance after releasing its 2023 results, which have set high expectations for 2024. Despite the ambitious outlook for the coming year, Jefferies believes the targets are within reach for the company.
The firm's analyst highlighted Beiersdorf's consistent strong delivery and share price performance, noting the completion of another successful year. The expectations for 2024 are described as lofty but achievable. Additionally, the medium-term prospects and valuation attractions for Beiersdorf are still considered favorable, contributing to the positive rating.
Jefferies has slightly lowered its forecast for Beiersdorf's earnings per share (EPS) in FY24 by 3%, attributing half of this reduction to a 20 basis point decrease in the expected EBIT margin. The rest of the decline is due to foreign exchange (FX) considerations. Despite this adjustment, the firm's outlook remains optimistic, with the price target increase justified by higher peer valuation and a model roll forward.
The new price target of EUR155.00 reflects Jefferies' confidence in Beiersdorf's ability to meet its financial objectives and continue its growth trajectory. The firm's analysis indicates that the company's stock remains an attractive buy for investors, considering the potential for sustained performance and profitability.
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