Unilever Price Target Raised, Analyst Remains Bearish on Shares

Unilever shares (LON:ULVR) are 11.81% higher this year, having shrugged off any bearish views until now. Jefferies has been one of those bulls, and whilst they raised their price target to 4,300p from 4,100p, the Underperform rating remains.

The firm highlights persistent concerns over pricing power and margin expansion despite a modest upward revision to the  valuation. The move follows Unilever's recent results update, which prompted the investment bank to recalibrate its estimates whilst reinforcing its cautious stance on the stock's near-term prospects.

The revised price target represents a technical adjustment rather than a change in sentiment, with Jefferies continuing to flag fundamental headwinds facing the Dove and Ben & Jerry's owner.

Central to the firm's bearish outlook is the view that pricing remains under pressure across Unilever's portfolio, a challenge that could derail management's ambitions to deliver peak operating margins by fiscal year 2026. The bank's analysts described this target as “ambitious” given current market dynamics and competitive pressures in key categories.

This latest assessment adds to a growing chorus of analyst caution surrounding Unilever's valuation. Just weeks earlier, on 7 January 2026, Jefferies had lifted its price target from 4,000 GBp to 4,100 GBp whilst keeping the Underperform rating intact. At that time, analyst David Hayes warned of valuation risks, projecting a potential compression in the next twelve months' price-to-earnings ratio from approximately 17 times to 15 times. 

Deutsche Bank downgraded Unilever from Buy to Hold on 9 February 2026, maintaining a 5,150 GBp price target but expressing unease over the stock's recent rally. The shares had climbed 10 percent over the preceding month and 14 percent from January lows, pushing the valuation to approximately 19 times forward twelve-month earnings, a 19 percent premium to the broader market. Whilst acknowledging operational improvements under new leadership, Deutsche Bank concluded the elevated valuation left limited room for further appreciation.

Similarly, BNP Paribas moved to a Neutral stance from Outperform on 8 January 2026, setting a price target of 71 dollars. The firm suggested that valuations across the consumer staples sector would remain depressed, implying constrained upside for Unilever shares.

Not all analysts share this pessimism.

Berenberg Bank raised its price target from 5,530 GBp to 5,600 GBp on 16 January 2026, reiterating a Buy rating and implying potential upside of approximately 17 percent. This optimistic stance reflects confidence in Unilever's strategic initiatives and long-term growth trajectory under refreshed management.

Price Targets

The divergence in analyst opinions underscores the uncertainty surrounding Unilever's ability to navigate a challenging operating environment whilst executing significant portfolio restructuring. Price action in the shares remains strong, yet concerns on Wall Street persist, creating what could be an interesting year ahead for Unilver followers.