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Investing.com -- Goldman Sachs downgraded Beiersdorf (ETR:BEIG) to “neutral” from “buy,” citing weaker growth expectations, margin pressure and uncertainty around the recalibration of its NIVEA brand, in a note dated Friday.
The brokerage said its view changed after FY25 results, noting “NIVEA brand sales growth decelerating, La Prairie failing to recover and the margin progression outlook deteriorating despite its low base.” Goldman Sachs set a 12-month price target of €90 versus a current price of €75.22.
The brokerage highlighted reliance on NIVEA, which accounts for 68% of Consumer sales, with Europe representing 44% of that segment.
Goldman Sachs expects organic sales growth of 0.5% in FY26, followed by 3% in FY27 and 3.5% in FY28.
Goldman Sachs expects Beiersdorf to report a 4.2% fall in organic sales in Q1 2026, including declines of 4% in Consumer and 4.7% in tesa, with NIVEA down 7% and La Prairie down 20%, partly offset by 8% growth in Derma.
The company began recalibrating NIVEA in the second half of 2025, focusing on Face Care, Body Care and Deodorants, alongside local execution changes. Goldman Sachs said “uncertainty remains over when investors should expect to see a step-up in growth.”
Margins are expected to come under pressure, with a 40 basis point decline in EBIT margin forecast for FY26 to 13.6%, and no improvement expected in FY27.
The brokerage cited raw material costs, foreign exchange and limited operating leverage, as well as the impact of the recalibration and geographic expansion.
Goldman Sachs cut its FY26, FY27 and FY28 EPS estimates by 2.7%, 3.3% and 3.4%, respectively, and lowered its FY26 revenue forecast to €9.86 billion from €10 billion previously.
While the Derma division continues to grow, it accounts for 18% of Consumer sales and does not offset NIVEA weakness, the report said.