Currency Woes Impact Oriflame

2008-04-28 | 07:27

Cosmetic firm lowers earnings outlook

Analysts at Kaupthing Bank reiterate their "neutral" rating on Oriflame Cosmetics SA, while reducing their estimates for the company. The target price has been reduced from SEK485 to SEK475.

In a research note published Friday, the analysts mention that the company has reported its 1Q08 revenues in-line with and pre-tax profits short of the consensus. There could be some profit taking by investors in the near term, the analysts say. A rise in currency and financing costs is expected to adversely impact Oriflame Cosmetics’ earnings going ahead, Kaupthing Bank adds. The EPS estimates for 2008 and 2009 have been reduced by 1% and 3%, respectively.