Deutsche Bank Upgrade of Unilever
Deutsche Bank announced on 11 November 2026 that it upgrades Unilever (LON:ULVR) from a "hold" to a "buy" rating and raises its price target to 5,350 pence, up from the previous target of 5,300 pence. The bank cited Unilever’s large scale in content creation, its ongoing transformation programme and the liquidity benefits of that scale as a hedge against emerging artificial‑intelligence‑related risks.
Analyst Tom Sykes noted that while the consumer staples sector continues to face structural and cyclical headwinds, Unilever’s size and improved consumer engagement could give it a competitive edge over smaller peers.
Deutsche Bank’s forecasts show like‑for‑like sales growth of 4.6% in the home and personal care segment for fiscal year 2027, with a margin expansion of 10 basis points; these figures are unchanged from its prior outlook. For fiscal year 2028, the bank projects 4.2% sales growth and a 20‑basis‑point margin improvement, also unchanged. The 2027 earnings‑per‑share estimate remains in line with consensus, while the earnings‑before‑interest‑and‑tax (EBIT) estimate is about 2% above consensus expectations.
J.P. Morgan reiterated an "overweight" rating on 4 November 2026 and maintained a €65 price target for Unilever NV, stating that the company’s €1 billion savings target provides scope for earnings progress.
Unilever disclosed on 3 November 2026 that it aims to achieve €1 billion of cost savings by the end of 2029. The savings will be realised through streamlining its operating model and addressing stranded costs arising from the planned merger of its food business with McCormick & Co, a transaction expected to close by mid‑2027. Additional savings are anticipated from organisational simplification, process redesign and the deployment of technology.