Unilever stock price target raised to GBP53.50 from GBP52.00 at Rothschild Redburn

Investing.com - Rothschild Redburn raised its price target on Unilever plc (LON:ULVR) (NYSE:UL) to GBP53.50 from GBP52.00 on Wednesday, while maintaining a Buy rating on the stock. The consumer goods giant, with a market capitalization of $149.5 billion, is currently trading at $60.23, slightly below InvestingPro’s calculated Fair Value.

The price target increase comes as Unilever prepares to demerge its ice cream business next month after more than a century of ownership, with the firm noting the demerger is proceeding on schedule. This strategic move comes as the company maintains its impressive 34-year streak of consecutive dividend payments, currently yielding 3.46%.

Rothschild Redburn highlighted that Unilever has implemented a productivity plan to offset stranded costs associated with the separation, describing both achievements as "illustrative of the ongoing positive change" at the company.

The research firm contrasted the current demerger process favorably against Unilever’s previous business exits, suggesting improved execution by the consumer goods giant.

Looking ahead to 2026, Rothschild Redburn expressed confidence in Unilever’s ability to achieve growth within its new 4-6% underlying sales growth target range, which would position it ahead of many global peers and potentially justify a multiple rerating.

In other recent news, Unilever is considering a demerger of its ice cream business, which could occur in early December if the SEC grants automatic approval following the publication of its prospectus. This move is currently delayed due to the U.S. government shutdown, but new SEC rules may allow it to proceed automatically if the shutdown continues. In another development, TD Cowen has lowered its price target for Unilever, citing a weaker growth outlook, particularly due to reduced organic growth in India. The investment firm has adjusted its third-quarter and full-year 2025 growth forecasts for the company.

Additionally, Jerry Greenfield, co-founder of Ben & Jerry’s, has resigned, citing concerns over Unilever’s influence on the brand’s independence. This resignation highlights ongoing tensions regarding the company’s social mission post-merger. Unilever is also undertaking a significant restructuring effort, planning to "refresh" 25% of its top 200 roles as part of broader organizational changes. These measures, which include cutting 7,500 jobs globally, aim to improve profit margins and address underperformance.

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