(CercleFinance.com) – Jefferies renewed its buy recommendation on Unilever on Friday, which it matches with a price target of 4,130 pence, in view of the group’s next results publication, scheduled for July 26.
In a research note, the US broker points out that its forecasts for the second quarter are higher than those of the consensus, a difference which it explains by its more optimistic view on prices.
The broker nevertheless specifies that it has revised its margin estimates for the 2023 financial year downwards, saying that it expects “persistent” inflation at the level of the costs of the consumer staples giant.
“But the real question remains, what value can be extracted from a portfolio of businesses that we believe is underutilized, as one of the world’s most famous activist investors joins its board of directors”, underlines the ‘intermediate.
Nelson Peltz, whose Trian fund holds 1.5% of the capital of the group, is indeed called to join the board on July 20, recalls Jefferies in his note.
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