RBC Capital's Upgrade#
RBC Capital has upgraded Unilever plc's stock rating from Underperform to Sector Perform. This change comes with a price target set at £42.00. Currently, Unilever's stock trades at $57.96, just above its 52-week low of $54.95. The company's price-to-earnings (P/E) ratio stands at 18.94, indicating how much investors are willing to pay for each dollar of earnings. Additionally, Unilever has a price/earnings to growth (PEG) ratio of 0.28, suggesting it may be undervalued relative to its growth prospects.
Concerns About Business Strategy#
RBC Capital has expressed concerns regarding Unilever's plans to dispose of its food business. They believe that these concerns are already reflected in the current share price. The company's management is focusing on increasing exposure to high-growth categories, but RBC notes that the competitive position of the new business will remain similar to the existing one.
Mixed Market Reactions#
In recent news, Unilever reported its fourth-quarter 2025 earnings, showing a revenue shortfall of $12.59 billion, which was about 21% lower than the expected $15.95 billion. Additionally, discussions about a merger between Kraft Heinz and Unilever regarding their food brands ended without a deal. Various analysts have differing views on Unilever's stock; BofA Securities has resumed coverage with a Buy rating and a price target of $72.00, while TD Cowen also maintains a Buy rating. Conversely, Berenberg downgraded Unilever from Buy to Hold, slightly raising its price target to £58.40 due to valuation concerns. These differing perspectives highlight the ongoing strategic considerations surrounding Unilever.