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 p5,400.00 price target.
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Antoine Prevot has given his Buy rating due to a combination of factors that suggest potential growth and resilience for Unilever. Despite facing challenges in emerging markets, particularly with Hindustan Unilever and Latin America, Unilever’s strategic adjustments and market positioning are expected to drive future growth. The upcoming TMICC spin-off and the potential for margin improvements from cocoa deflation are seen as positive developments.
Furthermore, the reduction in GST rates in India is anticipated to be beneficial, alongside North America’s strong performance in key categories like Beauty & Wellbeing and Personal Care. Unilever’s valuation appears attractive, trading in line with European Staples but offering better returns on invested capital, margins, and free cash flow. These elements contribute to a favorable outlook, justifying the Buy recommendation.
In another report released on October 3, Deutsche Bank also maintained a Buy rating on the stock with a £50.50 price target.