Cyclical Recovery and Structural Growth: Rationale Behind the Buy Rating

Sarah Simon, an analyst from Morgan Stanley, maintained the Buy rating on Unilever. The associated price target was raised to p5,470.00.

Sarah Simon has given his Buy rating due to a combination of factors that highlight both cyclical recovery and structural opportunity. She points to the improving growth profile in key emerging markets such as India and Brazil, alongside operational fixes in previously underperforming categories like laundry and deodorants, as evidence that the topline can accelerate from here.

At the same time, she sees margin and cash‑flow support from premiumisation, disciplined commodity exposure, and efficiency gains from AI‑enabled marketing production, with savings reinvested in higher‑impact media. Further upside, in her view, comes from portfolio reshaping in Foods, as well as scalable growth platforms in Wellness, Prestige Beauty, and Personal Care, which together underpin an attractive long‑term earnings and returns trajectory.

In another report released today, Barclays also maintained a Buy rating on the stock with a £60.00 price target.

Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ULVR in relation to earlier this year.