Analyst Victoria Petrova of Bank of America Securities reiterated a Buy rating on Unilever (ULVR – Research Report), with a price target of p5,500.00.
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Victoria Petrova has given her Buy rating due to a combination of factors including Unilever’s financial performance and strategic initiatives. The company reported results that aligned with market expectations, with sales and EBIT slightly exceeding projections, and strong free cash flow. Additionally, a share buyback program worth EUR 1.5 billion has been announced, which is seen as a positive move to enhance shareholder value.
Despite some caution regarding the economic environment, particularly in emerging markets, Unilever’s strategic focus on improving its product mix, implementing cost-saving measures, and adjusting pricing to manage cost inflation are expected to drive growth. The recent correction in the stock price, along with Unilever’s valuation discount relative to peers like Nestle, presents an attractive buying opportunity, with significant upside potential projected. Furthermore, the planned separation of the Ice Cream business is anticipated to allow Unilever to concentrate on higher-growth areas, enhancing its overall financial metrics.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a £52.00 price target.