Bank of America just raised its EUR/USD forecast
On Monday, UBS analyst Amit Sachdeva upgraded Hindustan Unilever (NSE:HLL) Ltd (HUVR:IN) stock from Neutral to Buy, raising the price target to INR2,800.00, up from the previous INR2,700.00. Sachdeva highlighted several factors behind the positive shift in outlook, including the company’s performance relative to the sector over the past few years and the current valuation.
Hindustan Unilever, which had lagged in the sector over the past three and five years, now presents a more appealing valuation. The firm’s forward-looking FY26E Price-to-Earnings (PE) ratio has decreased to 45 times from 65 times as of September 2021, which UBS considers to be undemanding.
UBS also anticipates a recovery in volume growth for Hindustan Unilever by FY26, attributing the previous 3% negative volume growth to cyclical factors. The analyst believes that as the company’s Beauty & Personal Care (BPC) segment shows signs of improvement, it could act as a significant catalyst for the stock.
The scale of Hindustan Unilever across various categories also sets it apart in the industry, with UBS suggesting it has the potential to become a growth engine through inorganic means in the next decade. The recent stock correction and prolonged underperformance are seen as contributing to an attractive risk-reward balance for investors considering Hindustan Unilever shares.
In summary, UBS’s upgrade reflects a belief that Hindustan Unilever is poised for a turnaround, with its valuation, potential for volume growth recovery, and strong industry position forming the basis for a more optimistic assessment of the stock’s prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.