FRANKFURT (dpa-AFX) - Beiersdorf's confirmed annual outlook sent the shares of the consumer goods and adhesives manufacturer on a strong recovery course on Thursday. After weak quarterly reports from competitors, investors reacted with relief to Beiersdorf's performance.
After falling to its lowest level since mid-September on Wednesday, the share price rose by 3.7 percent to 131.75 euros later on Thursday morning. This means that the shares are not only at the top of the DAX, but also back to their mid-October level. Over the course of the year, the share's loss was reduced to just under three percent.
The day before, a disappointing report from cosmetics group L'Oreal had put Beiersdorf shares under pressure. The French company had been hit particularly hard by weak business in China, where less money is currently being spent on make-up and skin care due to the generally weaker economic situation.
The Nivea Group's figures on Thursday were sufficient for a recovery, said one trader. Although group sales fell slightly short of expectations, investors were prepared for this after the reports from competitors, commented analyst Molly Wylenzek from Jefferies Research.
LBBW analyst Thomas Hofmann wrote that the current challenging environment in China had also weighed on the growth momentum of Beiersdorf's luxury products and continued to lead to a decline in demand for La Prairie brand products. However, the Nivea, Eucerin and Hansaplast brand portfolio remained strong and benefited from Beiersdorf's global presence and the increasing global demand for skin care products.
UBS analyst Guillaume Delmas also pointed out that Beiersdorf had confirmed its annual targets for 2024 despite some weakness and signaled an "overall positive development" in the fourth quarter. "In our view, this should reassure the market - especially after L'Oreal's missed third quarter. It should also limit potential downward revisions to consensus estimates."/ck/ngu/mis