Analyst Callum Elliott of Bernstein maintained a Buy rating on Unilever, with a price target of p5,900.00.
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Callum Elliott’s rating is based on several strategic factors that highlight Unilever’s potential for future growth. The recent Capital Markets Day event for the Magnum Ice Cream Company, a soon-to-be spun-off entity from Unilever, showcased a strong management team and a clear vision for the business’s future. This event provided a detailed explanation of past challenges and outlined strategic changes aimed at accelerating growth and expanding margins. These factors contribute to a positive outlook for the company’s performance in the coming years.
Despite the shares being relatively flat year-to-date and underperforming compared to high-performing peers, Elliott sees potential in the long-term growth prospects of Unilever. The skepticism surrounding the Magnum spin-off and its impact on Unilever’s shares is acknowledged, but the event’s positive takeaways are expected to mitigate some of these concerns. While there is caution regarding near-term prospects, the overall strategic direction and potential for margin expansion support the Buy rating.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a p5,400.00 price target.