Berenberg has lifted its price target on Unilever (LON:ULVR), arguing that the group has done more than its competitors to overhaul its business but the market has not recognised this, WebFG News reports. The comments came after the Anglo-Dutch group updated investors on its half-year performance last week, posting a dip in turnover.
Unilever’s share price has slipped into the red in today’s session, having shed 0.47 percent to 4,341.00p as of 14:13 BST. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.23 percent in the red at 7,661.31 points. The group’s shares have lost nearly one percent of their value over the past year, as compared with about a 2.8-percent gain in the Footsie.
Berenberg upbeat on Unilever
Berenberg, which sees Unilever, as a ‘buy,’ lifted its valuation on the stock from 4,250p to 4,700p on Friday. The analysts, however, left their target on the company’s Netherlands-listed shares unchanged at €54.
“We think Unilever has taken the biggest steps among peers to increase its agility, reduce costs, embrace digital channels and future-proof its portfolio, which is not reflected in valuation,” the broker pointed out, as quoted by WebFG News.
Berenberg further argues that its forecast for 3.3 percent annual organic growth and 4.1 percent overall growth ‘looks realistic,’ while results will also get a boost from the sale of Unilever’s spreads business, which was a drag in the second quarter.
Other analysts on consumer giant
UBS reaffirmed Unilever as a ‘buy’ today, lifting its price target on the shares from 4,250p to 4,700p. According to MarketBeat, the Anglo-Dutch consumer goods giant currently has a consensus ‘buy’ rating and an average price target of 4,438.24p.