Unilever: Morgan Stanley raises target price
(CercleFinance.com) - On Thursday Morgan Stanley renewed its "equal weight" recommendation on Unilever shares, while raising its target price from 3,800 pence to 4,000 pence.
In a report, the broker wonders why investors are increasingly favouring the Anglo-Dutch giant's stock within the food and consumer sector.
Trading at a 2023 P/E that is now hovering around 17x, the stock has risen to the point where it is now trading on the same multiples as Reckitt, the analyst argues, suggesting that the scenario of a business recovery is well priced in.
However, Morgan Stanley acknowledges that it sees additional upside potential of over 20%, which could bring its valuation in line with that of Nestlé, if successful reinvestments in the group's brands are made, a strategy which it believes could pay off.
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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.
In a report, the broker wonders why investors are increasingly favouring the Anglo-Dutch giant's stock within the food and consumer sector.
Trading at a 2023 P/E that is now hovering around 17x, the stock has risen to the point where it is now trading on the same multiples as Reckitt, the analyst argues, suggesting that the scenario of a business recovery is well priced in.
However, Morgan Stanley acknowledges that it sees additional upside potential of over 20%, which could bring its valuation in line with that of Nestlé, if successful reinvestments in the group's brands are made, a strategy which it believes could pay off.
Copyright (c) 2022 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.