Analyst David Hayes of Jefferies maintained a Sell rating on Unilever, retaining the price target of p4,000.00.
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David Hayes has given his Sell rating due to a combination of factors affecting Unilever’s prospects. One significant concern is the upcoming spin-off of the Magnum Ice Cream Co, which is expected to face challenges such as a shift towards health-conscious consumer preferences and the impact of weight-loss drugs. Additionally, the ice cream sector is capital-intensive, which could strain resources.
Furthermore, while the management of the new entity is well-regarded, the ambitious mid-term growth targets require credibility, especially given the tough weather comparisons anticipated in FY26. Investors might assign a price-to-earnings ratio for 2026 that reflects these uncertainties, ranging between 9.5x and 15.0x, which suggests potential volatility and risk in the stock’s valuation.
According to TipRanks, Hayes is a 3-star analyst with an average return of 1.4% and a 53.19% success rate. Hayes covers the Consumer Defensive sector, focusing on stocks such as Unilever, DANONE SA, and Reckitt.
In another report released on November 28, UBS also maintained a Sell rating on the stock with a p4,120.00 price target.