Analysts at invesment bank Nomura say that the continued cost-saving potential of the business has been underestimated and that the company is better placed to weather the economic conditions as a result.

The company raised the target price of Henkels share from €25.60 to €39, underlining the fact that a comprehensive restructuring is expected to transform both the company’s operations and its business culture.

Highlighting the upward trend, the company’s second quarter performance showed that, despite sales fell 5 per cent to €3.485m, operating profits shot up 145 per cent to €279m.