Unilever: shares look fully valued, RBC says.
(CercleFinance.com) - RBC Capital Markets maintains its "sector perform" rating on Unilever, while inching up its target price from 44 euros to 45 euros and updating its forecasts after the group's H1 results.
The broker explains that the consumer goods giant's increased guidance of "at least 100 basis points" in its margin growth over the full year is conservative and won't be followed by substantial acceleration in volumes.
Given its scepticism over volume growth and the importance of such volume growth to the Unilever investment case, RBC maintains its "sector perform" recommendation.
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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 broker explains that the consumer goods giant's increased guidance of "at least 100 basis points" in its margin growth over the full year is conservative and won't be followed by substantial acceleration in volumes.
Given its scepticism over volume growth and the importance of such volume growth to the Unilever investment case, RBC maintains its "sector perform" recommendation.
Copyright (c) 2017 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.