Unilever: 'undervalued' - Credit Suisse upgrades stock
(CercleFinance.com) - Credit Suisse has upgraded its rating (to "Outperform") on the share of the Anglo-Dutch consumer goods giant Unilever, betting on an acceleration in its growth.
Upping its corresponding target price from 50 euros to 59 euros (and 5,060 pence for the London-listed security), this suggests upside potential of around 10%.Analysts expect organic growth of 3.8% in 2019, against 3.4% for the consensus.
Having risen by 280 basis points in 2015 to 18.4% in 2018, the group's operating margin is expected to reach 19.5% in 2020.In short, Credit Suisse, which sweeps aside investors' doubts about the share, believes Unilever is undervalued relative to peers such as Nestlé and Procter & Gamble.
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