Cosmetics, Household & Personal Care Products Group Investing Heavily To Accelerate Volume growth

Even in the tough environment scenario, the group is still investing heavily in innovation and A&P for boosting volume growth. Volume is the sector is being driven by,” (i) big recovery in EM and (ii) US improving slowly, despite weak trends in Europe and Japan,” Deutsche Bank said. “Cost pressures are building, but pricing is coming and defensive attributes of group should find a bid, even if we don't see a great valuation opportunity here,” the analysts added. Deutsche Bank believed Newell (NYSE: NWL), Avon (NYSE: AVP), Energizer (NYSE: ENR) and Clorox (NYSE: CLX) to be among the top picks in the sector.

The analysts say, “Overall, we have not lowered any estimates yet as we have no idea where this thing settles out, but current view is that recent changes in spot rates are mostly manageable within current guidance.”

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