On Wednesday, the stock price target for Unilever (LON:ULVR) plc (NYSE: UL) was raised to $60 from the previous $58, while the company retained its Buy rating, according to a report by Argus. The firm anticipates that Unilever will see benefits from its introduction of new products, increased presence in emerging markets, and continuous efforts to enhance productivity.
The consumer goods giant has been focusing on refining its brand portfolio to better position itself for future growth. Despite currently having a lower operating margin of 16.7% compared to the peer average of 20.2%, Argus expects that as Unilever achieves its margin goals, its earnings will rise more rapidly than the industry average, leading to an expansion in multiples.
From a technical perspective, Unilever's stock has displayed a bullish pattern, marked by higher highs and lows since reaching a low point in October 2022. Fundamentally, the shares are trading at multiples below the peer average, which supports the positive outlook.
The revised $60 stock price target is based on a 20-times multiple of the estimated earnings per share (EPS) for 2025. Unilever's shares are traded on the New York Stock Exchange as American Depositary Receipts (ADRs), with each ADR representing one ordinary share.
Argus suggests that Unilever's shares are well-positioned as a core global Consumer Staples holding within a diversified portfolio, pointing to the company's strategic initiatives and current valuation as key factors for their positive rating.
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