Goldman Sachs turns bearish on Beiersdorf amid Nivea struggles

Goldman Sachs has taken a bearish stance on Beiersdorf, downgrading the German consumer products company from "neutral" to "sell" and reducing its 12-month price target from €82 to €73. The investment bank cited a longer-than-expected recovery for the Nivea brand, which faces intensifying competition from Unilever and L’Oréal.

The stock has dropped about 20% this year, and Goldman sees no upside to consensus earnings. The broker expects Beiersdorf’s Consumer division to deliver organic sales growth of just 2% to 3% over the mid-to-long term, lagging behind peers in the beauty and household and personal care sectors. Goldman forecasts a 3.1% organic sales decline in the Consumer division by 2026, citing Nivea’s limited growth potential, geographic exposure, and size.

Goldman expressed caution about higher advertising and promotional spending, noting that Beiersdorf’s €100 million additional media spending in the second half is relatively low compared to competitors’ marketing budgets. Nielsen data showed that 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%.

The broker’s 2026-2028 earnings-per-share estimates are 2% to 4% below the Visible Alpha consensus. Goldman forecasts 5% annual compound EPS growth from 2027 to 2029 and a 1% dividend yield. While the Derma business, including Eucerin and Aquaphor, remains a stronger area, it 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 the Visible Alpha consensus of -0.3%. It forecasts Nivea sales to fall 5.5%, citing retailer delistings and weak consumer conditions. Goldman suggested that greater use of Beiersdorf’s balance sheet for acquisitions or capital returns could improve its outlook on the stock.