FRANKFURT (dpa-AFX) - A likely weak start to the year for Henkel further fueled the share price slide triggered by the Iran conflict on Wednesday. In early afternoon trading, the consumer goods and adhesives manufacturer's preferred shares fell 4.4 percent to 69.90 euros, making them one of the worst performers on the Dax. Furthermore, the stock slipped below its 200-day moving average, currently around 71.50 euros, which signals the longer-term trend.

In the week and a half since the escalation in the Middle East, the preferred shares have lost 16 percent, erasing all gains made since the beginning of the year.

Analysts pointed primarily to the unexpectedly sharp slowdown in growth in the Adhesive Technologies division during the fourth quarter of 2025, as well as the start of the current year. Following the release of the figures, analyst Wassachon Udomsilpa from the Canadian bank RBC moderately lowered her growth estimates to account for ongoing geopolitical uncertainties and the disappointment in the adhesives segment. She also adjusted her price target from 78 to 75 euros while reaffirming her neutral "Sector Perform" rating.

Barclays analyst Warren Ackerman detailed both positives and negatives in the final quarter's business performance. While the Consumer Brands division exceeded expectations, weakness in the automotive and electronics sectors impacted the adhesives business.

"The main issue, however, is the guidance for a weak start to 2026 and the broad operating profitability forecast of 14.5 to 16.0 percent," he wrote. Accordingly, questions arise regarding what to expect in terms of oil and natural gas prices. As JPMorgan analyst Celine Pannuti added, "Henkel is vulnerable to raw material price developments, as seen between 2021 and 2023."

However, Barclays expert Ackerman also recalled that Henkel had a very weak first quarter last year. Overall, more questions than answers remain, he summarized, even though Henkel assumes that the opening quarter of 2026 will remain within the guidance for the full fiscal year, albeit possibly at the lower end. "However, the earnings per share (EPS) forecast could end up at the upper end once all acquisitions are taken into account."

Pannuti also focused on the fact that Henkel has not announced a new share buyback program and expects consensus EPS estimates for 2026 to decline slightly for now. Following the conference call, she concluded: "Overall, the start to the new fiscal year has been weak, clouding the visibility of a recovery in sales volumes, while potentially higher raw material inflation—should current prices persist—could jeopardize margin improvement, as seen in 2021-22."/ck/err/mis