Unilever, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Antoine Prevot from Bank of America Securities reiterated a Buy rating on the stock and has a p6,000.00 price target.
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Antoine Prevot has given his Buy rating due to a combination of factors related to the strategic Food business combination and the resulting valuation upside. He views the agreed 13.8x FY25 EV/EBITDA multiple for the Foods perimeter as an attractive exit price versus both the broader food sector and Unilever’s own trading multiple, while the Reverse Morris Trust structure preserves tax efficiency for shareholders.
Prevot also highlights that, after the transaction, Unilever becomes a focused home and personal care company with stronger exposure to the U.S., India, and other emerging markets, supported by a clear and shareholder‑friendly capital allocation framework including sustained dividends and buybacks. Although he acknowledges execution risks tied to stranded cost reduction, restructuring, and higher sensitivity to certain raw materials, he believes these are manageable and that the medium‑term growth and margin profile justifies a positive recommendation.
In another report released today, TipRanks – xAI also upgraded the stock to a Buy with a p5,117.00 price target.