RBC Capital upgraded Unilever (ULVR) shares to Sector Perform from Underperform in a note on Tuesday, citing a share price decline that the firm believes now fairly reflects lingering concerns about the consumer goods giant’s strategic direction.
Analyst James Edwardes Jones maintained a price target of 4,200p while lifting the rating, noting that reservations about the company’s planned disposal of its food business are already captured in the current valuation. Consensus estimates, he added, reflect caution about Unilever’s growth trajectory.
The upgrade comes as Unilever shares trade under pressure. The stock closed Tuesday’s session at 4,219p, down roughly 13% year-to-date and more than 20% over the past 12 months.
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RBC’s move follows a string of more bullish calls from other firms this month.
Bank of America recently reinstated coverage of the stock with a Buy rating and a 5,300p price target on April 14, pointing to Unilever’s transformation toward wellbeing and personal care products in the US, its market position in India and what the firm described as an attractive valuation.
DZ Bank also upgraded the stock to Buy from Hold earlier this month, setting a 5,250p target.
Broader analyst sentiment leans constructive. Of 17 analysts covering the stock, eight carry a Buy rating and two a Sell, according to TradingView data. The consensus price target stands at 5,168p, implying potential upside of roughly 22.5% from current levels.
RBC’s price target of 4,200 GBp remains among the more cautious, sitting just below Tuesday’s closing price.
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