Unilever (ULVR – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst David Hayes from Jefferies maintained a Sell rating on the stock and has a p4,100.00 price target.
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David Hayes has given his Sell rating due to a combination of factors impacting Unilever’s financial outlook. The company’s current valuation, at 18 times the next twelve months price-to-earnings ratio, suggests that its performance may lag behind its peers in the near term. This is compounded by a volume and mix miss in the fourth quarter, where only the ice cream segment showed positive results.
Furthermore, Unilever’s guidance indicates weakening market trends continuing into the second half of 2024 and likely persisting into 2025. The anticipated optimistic margin guidance did not come to fruition, with only a modest improvement projected. Additionally, the company’s share buyback plan is limited, which could lead to earnings per share projections being slightly overestimated for 2025.
In another report released on February 10, UBS also maintained a Sell rating on the stock with a £40.50 price target.