Key Moments
- Deutsche Bank upgraded Unilever (LON:ULVR) to “buy” from “hold” and lifted its price target to 5,350 pence from 5,300 pence.
- The bank projects like-for-like growth in home and personal care of 4.6% in fiscal 2027 and 4.2% in fiscal 2028, with modest margin expansion in both years.
- Unilever targets €1 billion in savings by the end of 2029, partly linked to its planned food business merger with McCormick & Co, expected to close by mid-2027.
Deutsche Bank Upgrade and Rationale
Investing.com — Deutsche Bank on Wednesday upgraded Unilever (LON:ULVR) to “buy” from “hold” and increased its price target to 5,350 pence from 5,300 pence. The bank pointed to Unilever’s longer-term transformation potential and liquidity profile as providing a buffer against risks associated with artificial intelligence.
Analyst Tom Sykes noted that the broader consumer staples universe is still dealing with significant structural and cyclical pressures. However, he argued that Unilever’s scale in content creation and its improved engagement capabilities could leave it better positioned than smaller competitors.
Growth and Margin Outlook
Deutsche Bank’s projections for Unilever’s home and personal care business remain unchanged. The bank expects like-for-like growth of 4.6% in fiscal 2027, alongside margin expansion of 10 basis points, having previously assumed no margin expansion.
For fiscal 2028, Deutsche Bank continues to forecast like-for-like growth of 4.2%, with margin improvement of 20 basis points, also unchanged from its prior view. The 2027 earnings per share estimate is unchanged and described as broadly aligned with consensus, while the earnings before interest and tax forecast sits about 2% above consensus.
| Metric | Fiscal 2027 | Fiscal 2028 |
|---|---|---|
| Like-for-like growth (Home & Personal Care) | 4.6% | 4.2% |
| Margin change | +10 basis points | +20 basis points |
| EPS forecast vs consensus | Unchanged; broadly in line | Not stated |
| EBIT forecast vs consensus | About 2% above | Not stated |
Other Analyst Views
J.P. Morgan reaffirmed its “overweight” stance on Unilever NV on Nov. 4, maintaining a €65 price target. The firm said the company’s savings objective provides room for further earnings advancement.
Cost-Saving Targets and Strategic Actions
On Nov. 3, Unilever announced that it aims to achieve €1 billion in savings by the end of 2029. The company plans to reach this target by simplifying its operating model and tackling stranded costs associated with the proposed merger of its food business with McCormick & Co, a transaction that is expected to complete by mid-2027.
Unilever also indicated that additional savings are anticipated through organisational simplification, process redesign and the use of technology.
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