Analyst David Hayes from Jefferies maintained a Sell rating on Unilever (ULVR – Research Report) and keeping the price target at p3,700.00.
David Hayes has given his Sell rating due to a combination of factors impacting Unilever’s performance. The company’s organic sales growth of 3.0% may seem reassuring, aligning with previous expectations, yet it primarily stems from price increases rather than volume or mix improvements. This indicates a potential weakness in consumer demand or product appeal, as the volume and mix metrics did not meet expectations.
Additionally, there is a cautious outlook regarding the acceleration of growth in the second quarter. The company’s reliance on the second half of the year for margin improvement suggests uncertainty in achieving significant gains in the near term. Consequently, Unilever’s stock is expected to perform only on par with its peers, leading to the Sell recommendation.