Magnum Ice Cream Shares: Analysts Split on Post-Demerger Outlook

Magnum Ice Cream drew a flurry of analyst initiations this week as trading in newly listed TMICC shares began their fourth day, following the brand’s demerger from Unilever on Saturday, 6 December. 

The stock, now operating as an independent pure-play ice cream group with a 21 percent global market share, has attracted a wide range of early views on its valuation and near-term prospects.

Bank of America began coverage with a Neutral rating and a €13.80 price target, noting that the logic of separating Magnum from Unilever “makes sense” and should eventually lead to sharper capital allocation. 

However, BofA cautioned that the benefits from the transformation will take time to materialise and “properly start” in fiscal 2027.

Morgan Stanley was more upbeat, initiating at Overweight with a €16.50 target and calling the shares “too cheap” given what it sees as a compelling earnings growth trajectory. 

BNP Paribas also started with an Outperform and a €16.30 target.

Others took a more measured stance. JPMorgan began at Neutral with a €14 target, arguing that elevated costs and softer free cash flow in the short term could limit valuation upside.

UBS struck a constructive tone, launching with a Buy rating and a €14.30 target. The bank said Magnum is outperforming in a “subdued category” and expects margin expansion and “meaningful” free cash flow generation from 2028.

The divided early coverage reflects both optimism over Magnum’s long-term scale advantage and caution about the near-term cost pressures that come with standing alone. The company's shares are up over 3% on Thursday.