Jefferies has increased the advice for Unilever from “Hold” to “Buy” and has raised its target price from 53 euros to 59 euros.
The analysts at Jefferies expect that the Unilever management will take more measures, for example by cutting the portfolio, in order to raise the growth expectations in order to keep activist shareholders away. ‘Sentiment is bleak and consensus has chosen to interpret full-year 2020 growth guidance conservatively,’ Jefferies analysts say in a note.
An acceleration of the underlying growth would be the best signal, according to Jefferies, certainly after last month’s sales warning. Unilever underperformed the market in the last 6 months.
The Unilever share rose 1.88 percent to 51.90 euros on Friday. The current dividend yield is 3.2%
Unilever is part of our international dividend portfolio.
