Jefferies Raises Unilever Share Target Slightly, but Bearish Outlook Persists

Unilever PLC (LON: ULVR) is navigating a complex landscape of regional growth dynamics and strategic shifts, as reflected in recent analyst commentary and the company's first-half 2025 results.

Jefferies analyst David Hayes recently increased the firm’s price target on Unilever to 3,900p from 3,800p, but maintained an “Underperform” rating on the stock, signaling continued concerns about the consumer goods giant's future performance.

Unilever's shares closed at 4,531p on August 1, 2025, up 2.8%. So far on Monday, it is down 0.3% at around 4,516p per share.

Jefferies' updated model follows Unilever's first-half results, pinpointing a critical challenge: decelerating growth in the United States.

Jefferies explained that to counterbalance this slowdown, Unilever is increasingly reliant on emerging markets, specifically India, Indonesia, and China, to drive future growth.

First-Half 2025 Performance Details

Unilever's first-half 2025 performance revealed underlying sales growth of 3.4%, composed of 1.5% volume growth and 1.9% price growth.

A significant portion of this turnover, over 75%, was attributed to the company's “Power Brands.” However, the company's turnover declined by 3.2% to €30.1 billion, impacted by adverse currency movements and net disposals.

Despite this, Unilever reported a strong gross margin of 45.7%, which has allowed for increased investment in brand and marketing, rising by 40 basis points to 15.5%.

Outlook and Analyst Consensus

Unilever has reaffirmed its full-year 2025 outlook, anticipating underlying sales growth within the 3% to 5% range, with stronger growth expected in the second half. The company also projects an improvement in the underlying operating margin for the full year.

MarketBeat shows the consensus rating for Unilever is “Moderate Buy,” based on evaluations from eight Wall Street analysts over the past 12 months.