Unilever: Oddo BHF still neutral; cautious about growth
(CercleFinance.com) - Oddo BHF maintains its neutral rating on the Unilever share, which is currently the worst performer in the AEX 25 index in Amsterdam after the group announced disappointing growth.
The broker's target price of 48 euros is about 5% higher than the share's current share price.
Admittedly, in 2018 the Anglo-Dutch consumer goods giant generated EPS that is 2% higher than expectations. The fact remains that organic growth stands at 2.9%, i.e. below the target range of 3% to 5%. In addition, a report adds that, "the 2019 guidance for organic growth (lies) at the bottom of the range of 3% to 5%, Oddo BHF adds, while the consensus was looking for 3.9%.
Does the new CEO want to be more conservative to then surprise the market or does he want to send a message of caution at a time when competitive conditions are stiffening and where embarked price increases are creating uncertainty on volumes? analysts wonder. However, note that Oddo BHF is confident in forecasts through to 2020.
Copyright (c) 2019 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 broker's target price of 48 euros is about 5% higher than the share's current share price.
Admittedly, in 2018 the Anglo-Dutch consumer goods giant generated EPS that is 2% higher than expectations. The fact remains that organic growth stands at 2.9%, i.e. below the target range of 3% to 5%. In addition, a report adds that, "the 2019 guidance for organic growth (lies) at the bottom of the range of 3% to 5%, Oddo BHF adds, while the consensus was looking for 3.9%.
Does the new CEO want to be more conservative to then surprise the market or does he want to send a message of caution at a time when competitive conditions are stiffening and where embarked price increases are creating uncertainty on volumes? analysts wonder. However, note that Oddo BHF is confident in forecasts through to 2020.
Copyright (c) 2019 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.