Beiersdorf Aktiengesellschaft

Goldman Sachs downgraded German consumer products company Beiersdorf to "sell" from "neutral" on Tuesday and cut its 12-month price target to €73 from €82, saying a recovery in the Nivea brand could take longer than expected as competition from Unilever and L'Oréal intensifies. The stock is down about 20% this year, and Goldman sees no upside to consensus earnings. Goldman expects Beiersdorf's Consumer division to deliver organic sales growth of 2% to 3% over the mid-to-long term, below beauty and household and personal care peers, and forecasts a 3.1% organic sales decline in Consumer in 2026. The broker said it was cautious that higher advertising and promotional spending would materially boost sales, noting Beiersdorf has announced €100 million of additional media spending in the second half, which Goldman called low compared with competitors' marketing budgets. Nielsen data cited by Goldman showed Unilever's Vaseline and L'Oréal's Mixa grew 7% and 22%, respectively, in Europe in the 12 weeks to Sept. 6, while Nivea sales fell 6%. Goldman's 2026-2028 earnings-per-share estimates are 2% to 4% below Visible Alpha consensus, and it forecasts 5% annual compound EPS growth from 2027 to 2029 and a 1% dividend yield. Beiersdorf's Derma business, which includes Eucerin and Aquaphor, remains a stronger area, Goldman said, but accounts for only 20% of Consumer sales, compared with 66% for Nivea based on 2026 estimates. Ahead of third-quarter results due on Oct. 27, Goldman expects group organic sales growth of -1.4%, compared with Visible Alpha consensus of -0.3%, and forecasts Nivea sales to fall 5.5%, citing retailer delistings and weak consumer conditions. Goldman said greater use of Beiersdorf's balance sheet for acquisitions or capital returns could make it more positive on the stock.