Unilever’s Challenging Outlook: Sell Rating Amidst Uncertain Growth and Strategic Shifts

Analyst David Hayes of Jefferies maintained a Sell rating on Unilever (ULVR – Research Report), reducing the price target to p3,700.00.

David Hayes has given his Sell rating due to a combination of factors impacting Unilever’s performance. One of the primary concerns is the company’s less ambitious outlook for 2025, which has been perceived as a setback. This outlook suggests that Unilever’s sales momentum is heavily reliant on category growth, which has been relatively lackluster since 2015. The new CEO is expected to address these challenges, but there is uncertainty about whether the company can defy the current trends in its category exposure.
Additionally, the sales growth outlook for 2025 indicates a slower start, with an expected organic growth of around 3% in the first quarter. This projection aligns with the broader industry sentiment, but it raises concerns about Unilever’s ability to outperform its peers. The potential need for a significant portfolio shift before 2026 adds to the uncertainty, as the company may require more time to implement such changes effectively. These factors collectively contribute to the Sell rating assigned by David Hayes.

In another report released on March 6, UBS also maintained a Sell rating on the stock with a £41.10 price target.