Beiersdorf's in Line Q4 Overshadowed by Increased Investments

Narrow-moat Beiersdorf’s fiscal 2020 results were broadly in line with our forecasts, and we make no change to our EUR 89 fair value estimate. Results were overshadowed by the announcement of EUR 300 million in incremental investment over the next five years. This is in line with our thesis, however, that the customer acquisition cost in mainstream personal care is likely to increase, and we maintain our medium-term forecasts, which nevertheless assume some margin expansion. After a pullback, Beiresdorf now looks appropriately priced.