Unilever share price: Jefferies turns bullish on stock

on Dec 14, 2016
Updated: Oct 21, 2019

Analysts at Jefferies have lifted their stance on Unilever (LON:ULVR), pointing to the group’s cashflow guidance. The comments provided a boost for the Anglo-Dutch group’s shares in the previous session.

Unilever’s share price closed 2.62 percent higher at 3,193.50p in London yesterday, outperforming the broader market rally which saw the benchmark FTSE 100 index spike 1.13 percent higher to 6,968.57, boosted by M&A activity in the television and telecoms sector. The group’s shares have added more than nine percent this year, as compared with an 11.6-percent rise in the Footsie.
Jefferies raised its stance on Unilever from ‘hold’ to ‘buy’ yesterday, lifting its price target on the shares from 3,400p to 3,700p. The analysts argue that new guidance from the consumer goods giant amounts to one of the strongest combinations of earnings per share and free cash flow yield in the sector.

“Far from guidance being a capitulation to bond proxy status, we see a growth posture being maintained in the form of robust marketing investment, capex>depreciation and ongoing share momentum,” the bank explained, as quoted by Sharecast. “Relative to which market reaction has been one of indifference. While others zig on ULVR, we choose to zag.”
Earlier this month, JPMorgan & Chase downgraded the company to ‘neutral’, with a price target of 3,200p. Goldman Sachs, which sees the consumer goods group as a ‘sell,’ lifted its valuation on the shares from 3,035p to 3,050p.
The 17 analysts offering 12-month price targets for Unilever for the Financial Times have a median target of 3,700.00p, with a high estimate of 4,200.00p and a low estimate of 2,950.00p. As of December 13, the consensus forecast amongst 21 polled investment analysts covering the Anglo-Dutch consumer goods group has it that the company will outperform the market.
As of 08:02 GMT, Wednesday, 14 December, Unilever plc share price is 3,172.50p.

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