UPDATE 2-Beiersdorf misses '08 sales target as Tesa drags

* Beiersdorf 2008 underlying sales up 7.5 pct

* 2008 EBIT margin excl. special items/acquisitions 12.5 pct

* Confirms mid-term targets * Shares down 0.7 percent in weak market

(Adds earnings details, background)

FRANKFURT, Jan 13 (Reuters) - Germany's Nivea cream maker Beiersdorf (BEIG.DE) missed its 2008 sales growth target on Tuesday due to weakness at its Tesa adhesives unit due to the economic slowdown as it confirming its mid-term targets.

Analysts said they were impressed how well Beiersdorf's consumer segment -- which makes up about 88 percent of its operating profits -- held up against a deteriorating economic environment as Tesa's fourth-quarter sales fell.

"Results show that the economic downturn had no significant impact on Beiersdorf's cosmetics business in 2008," said Andreas Riemann, analyst at Commerzbank.

Underlying group annual sales rose 7.5 percent, failing to match its target growth for over 8 percent. However, an underlying operating margin at 12.5 percent matched its target to see a figure above 2007's margin of 12.4 percent.

Shares of the Hamburg-based company bucked the trend in a weaker market, dipping 0.7 percent to 39.95 euros by 1120 GMT, while the German blue-chip DAX index .GDAXI, which Beiersdorf joined in December, fell 2.3 percent.

While underlying sales at Beiersdorf's consumer segment -- including Nivea and Eucerin skin care products and Labello lip balm -- rose 8.6 percent to 5.1 billion euros ($6.8 billion), sales at Tesa stagnated to show just a 1.2 percent rise. The group had aimed to raise Tesa sales by 5 percent in 2008.

Analyst said Tesa's fourth-quarter underlying sales dropped almost 10 percent as its cyclically sensitive industrial business was impacted by the slowdown in the economy, especially in the automotive industry.

Tesa generates about 78 percent of its annual sales in the automotive, electronics and printing industry. But it also only generates about 12 percent of Beiersdorf's operating profits.

"The most important figure in our opinion in the present economic environment is the organic sales growth of 8.6 percent of the consumer business which compares to our estimates of 8 percent and the expected organic sales growth of 4 percent of L'Oreal," said Heinz Mueller, analyst at DZ Bank.

"This shows the excellent market position of Beiersdorf," he added, confirming his "buy" rating.

Beiersdorf trades at about 17 times 2009 projected earnings, at a slight premium to L'Oreal (OREP.PA), the world's biggest beauty products group, and to the DJ Stoxx Personal and Household Products index .SXQP.

"Beiersdorf's strong organic growth and substantial net cash on its balance sheet justifies a premium to peers like L'Oreal," said Charles Manso de Zuniga, analyst at Dresdner Kleinwort.

The group confirmed its mid-term targets, aiming at an operating margin at its consumer business of 15 percent by 2010, compared to around 13 percent in 2008, and a global market share of 5.5 percent after its share stood at 4.8 percent in 2008.

Beiersdorf's 2008 earnings before interest and tax (EBIT) before special items rose 1.6 percent to 695 million euros on sales of 5.97 billion euros, up 10.6 percent, but excluding currency effects and acquisitions the growth was 7.5 percent. (Reporting by Eva Kuehnen; Editing by David Jones)