This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Technical Observations – For
Technical Observations – Against
Bullish share price breakout, taking shares to multi-month highs. On 6 Dec, Berenberg said the new CEO is reassuring on 2020 targets. On 3 Dec Moody’s said‘s acquisition of GSK’s Indian consumer business will be a good fit.
Risks to Unilever include a market rally that favours risk assets over defensives, interest rates hikes that make bonds more attractive than Unilever’s dividends, a general economic downturn that sees consumption fall and, of course, broker downgrades.
Brokers are bullish on Unilever’s shares, with an overwhelmingly 90% of analysts saying “Buy” or “Hold”. Sentiment is further supported by two-thirds of brokers seeing share price upside to an average target of 4424p, just below our near term target of 4500p.
Next Event: Trading Update, early Feb
Latest Broker 12-Month Consensus: 55% Buy, 35% Hold, 10% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
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