Unilever share price: Hargreaves Lansdown points to good early progress

Consumer goods giant nevertheless has much to do

Unilever share price: Hargreaves Lansdown points to good early progress

Hargreaves Lansdown argues that Unilever (LON:ULVR) has made ‘good early progress’ a year on following Kraft Heinz’s failed takeover bid, Citywire reports. The comments came after the Anglo-Dutch consumer goods giant updated investors on its full-year performance yesterday.

Unilever’s share price has advanced in London in today’s session, having added 0.61 percent to 4,056.50p as of 10:20 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into the red and currently standing 0.31 percent lower at 7,467.31 points.

‘Good early progress’

Charlie Huggins, manager of the HL Select UK Growth fund, weighed in on Unilever’s full-year results yesterday, noting that they showed growth in sales, higher margins, and an ‘impressive’ rise in free cashflow which will see UK investors receive a 14-percent increase in the fourth quarter payout.

“While the initial signs are encouraging, Unilever still has much to do if it is to sustain this momentum over the coming years,” the analyst pointed out, as quoted by Citywire, adding that the world was ‘becoming tougher’ for all consumer goods, “with the internet having opened the way for smaller brands to reach a larger audience”.

Huggins further noted that Unilever was in the ‘fortunate position’ of transitioning to a new shopping landscape with well-known brands and a ‘formidable geographic footprint’.

Other analysts on Unilever

Goldman Sachs, which is bearish on Unilever with a ‘sell’ rating, set a price target of 3,820p on the shares today, while JPMorgan Chase & Co reaffirmed the group as a ‘neutral,’ valuing the shares at 4,400p. Barclays, which sees the Anglo-Dutch consumer goods group as an ‘overweight,’ lowered its price target on the shares from 4,560p to 4,530p. According to MarketBeat, Unilever currently has a consensus ‘hold’ rating and an average price target of 4,392.22p.

As of 10:44 GMT, Friday, 02 February, Unilever plc share price is 4,056.50p.

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