Update shared on27 Aug 2025
Fair value Increased 1.01%Analysts have modestly raised Unilever’s price target to £50.27, largely driven by confidence in emerging markets growth offsetting U.S. weakness and reflecting positive adjustments after strong first half results.
Analyst Commentary
- Bullish analysts expect growth in emerging markets such as India, Indonesia, and China to offset slower growth in the U.S.
- Some analysts have increased price targets following Unilever's first half results, reflecting adjustments to their financial models.
- Concerns remain among bearish analysts regarding softening U.S. growth and its potential impact on overall performance.
- Outperform ratings signal confidence in Unilever's strategy to leverage emerging market opportunities for revenue and profit expansion.
- Bullish analysts cite expansion in key Asian markets as a major growth lever in the medium term.
What's in the News
- Jefferies raised its price target on Unilever to 3,900 GBp (from 3,800 GBp) but reiterated an Underperform rating, citing slowing U.S. growth and increased reliance on India, Indonesia, and China for future growth (Jefferies, 2025-08-03).
- Unilever is actively exploring the sale of its healthy snack brand Graze, continuing its strategy to shift away from food towards higher margin personal care and beauty products; Graze has underperformed financially since its acquisition (Financial Times, 2025-06-18 & Key Developments, 2025-06-19).
- The company’s portfolio reshaping, led by new CEO Fernando Fernandez, includes recent divestitures of Dutch brands Conimex and Unox as well as the plant-based brand The Vegetarian Butcher; this reflects a broader strategy to prioritize health, beauty, and wellness categories (Key Developments, 2025-06-19).
- Dove launched a limited-edition “Garden Tea Party Collection” exclusively at Target, tapping into trending scent profiles and aesthetic themes popular on social media, demonstrating Unilever’s commitment to innovation and trend alignment in its core personal care segment (Key Developments, 2025-06-30).
- Unilever completed a buyback of 27.8 million shares (1.12% of outstanding) for £1.5 billion between February and May 2025, supporting capital returns to shareholders (Key Developments, 2025-05-30).
Valuation Changes
Summary of Valuation Changes for Unilever
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £49.76 to £50.27.
- The Future P/E for Unilever has significantly fallen from 22.02x to 18.86x.
- The Discount Rate for Unilever remained effectively unchanged, moving only marginally from 8.41% to 8.36%.
Disclaimer
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