(CercleFinance.com) – The stock ended the day down nearly 1%, penalized by UBS’s recommendation. The analyst firm reaffirms its ‘sell’ recommendation on Unilever despite a price target raised from 3,400 to 3,670 pence, a new target which leaves a downside potential of 9% for the action of the Anglo-Dutch group of products of current consumption.
While its underlying operating profit exceeded expectations by 6%, the broker deems ‘unlikely that this will translate into a significant improvement in results given the cautious margin outlook and weak volumes’.
“A clear focus on reinvestments would be welcome, but improving the group’s underlying sales growth prospects will take time and require further portfolio rotation,” warns UBS.
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