Unilever: Oddo BHF still a buyer

(CercleFinance.com) - Unilever announced this morning the separation of its Ice Cream activities into one entity via a demerger with a structure comparable to listed companies.


The group also announced a productivity program which should bring restructuring costs to 1.2% of group sales (compared with 1%) and generate annual cost savings of E800m over the next three years.

The Group has taken note of the impact of this decision and has announced an increase in its medium-term objectives. The organic growth target is now mid-single digit over the medium term (vs. 3% to 5%), with the objective of modest growth in operating margin maintained, Oddo BHF says.

Analysts believe that Unilever can become a pure player in Consumer Care (care of the body, the inside of the body and the body's immediate environment) by refocusing on Personal Care, Consumer Health and Home Care.

Oddo BHF confirms its Outperform opinion on the stock and its target price of E58.

This announcement should be very warmly welcomed and lend credibility to a refocusing scenario, which is an obvious factor for better operating performance, greater consistency and, above all, rerating in terms of P/E, Oddo BHF says.


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