Analysts are becoming increasingly positive on Unilever (LON: ULVR) despite a sharp share-price decline this year, with multiple firms highlighting improving fundamentals and an attractive valuation backdrop.
The shares are down 12.4% year to date and 19.8% over the past 12 months, but several brokers argue the weakness has opened up value.
Bank of America reinstated coverage with a Buy rating and a 5,300p price target, citing what it views as a successful strategic shift in the United States toward wellbeing and personal care.
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The bank also pointed to Unilever’s “unrivalled market position” in India, one of the world’s largest and fastest-growing consumer markets, and said the valuation “now looks to us attractive.”
Last week, DZ Bank also moved to a Buy rating, upgrading the shares from Hold and setting a 5,250p target.
Meanwhile, TD Cowen maintained its Buy rating in late March even as it cut its target to $67 from $80. The firm warned that household and personal care companies are struggling to manage higher oil-related input costs linked to the conflict in Iran, adding that price increases are likely to remain “sticky” due to infrastructure damage.
It also cited weaker pricing power and fewer opportunities to trade consumers into super-premium categories.
According to TradingView data, eight of seventeen analysts now rate Unilever a Buy, six recommend Hold and three have Sell ratings. The consensus price target stands at 5,170p, implying roughly 21.6% upside from Tuesday’s close.
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