Unilever: RBC downgrades to underperform

(CercleFinance.com) - RBC announced on Monday that it has downgraded Unilever shares from 'sector perform' to 'underperform', with a target price cut from 4800 pence to 4000 pence.


The Canadian broker believes that the FMCG group does not have sufficient resources to achieve its 2% growth target, due to its lack of market leadership.

In his view, the Anglo-Dutch group will only have a 'leading' position in half its categories once the ice cream business has been split off.

RBC also points to the company's history of under-investment compared to its competitors, a trajectory it intends to maintain in the future.

While the stock's valuation now places it among the best in the sector, the broker deems this premium 'unjustified' and considers that the risk/return profile is currently trending downwards.


Copyright (c) 2025 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.