Unilever: Jefferies maintains underperform rating
(CercleFinance.com) - While raising its target price from 4,000 pence to 4,100 pence, Jefferies maintains its 'underperform' rating on Unilever shares, following a 26% YTD rise in the share price which credits the new management with making a significant and rapid difference.
The broker takes issue with this change in perception, including the marked rebound in gross and operating margins posted in H1 2024, and the associated increase in targets for FY 2024.
Jefferies believes that now that these positive elements have revived profitability expectations, the stock requires improvements in trend or sales growth guidance, which it feels are less reliable given current evidence.
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The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
The broker takes issue with this change in perception, including the marked rebound in gross and operating margins posted in H1 2024, and the associated increase in targets for FY 2024.
Jefferies believes that now that these positive elements have revived profitability expectations, the stock requires improvements in trend or sales growth guidance, which it feels are less reliable given current evidence.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.