Unilever PLC (LSE:ULVR)'s decision to divest itself of its ice cream business - which makes freezer staples such as Ben & Jerry's and Wall's - is being viewed favourably by analysts as they digest the news.
The food and household goods conglomerate, which is looking to complete the demerger by the end of next year, unveiled the plans as part of a streamlining process that will see it do 'fewer things better'.
Around 7,500 jobs are also likely to go as the group, whose brands include Hellmann's, Lipton, and PG Tips, looks to pep up its sedentary financial and stock market performance.
Barclays in a note out on Wednesday said: "We view the separation of ice cream as a bold step forward by the new management team which highlights the optionality that Unilever has to make it a higher growth and higher margin business.
"The decision to raise the 2026 growth algo to mid-single digit and modest margins would put it up there with leading Staples peers.
"Our view is the separation of Ice Cream is a decisive step in making Unilever a higher growth, higher margin business."
The bank also pointed out that there are no synergies between Cornetto and Magnum operations and the rest of the Unilever business.
Citi described the putative spin-off as a "critical step to reduce company complexity". Crucially, the separation, which could see the independent ice cream business listed in the Netherlands, will result in zero dilution to Unilever's earnings per share.
This, Citi says, is "thanks to new cost savings exceeding dis-synergies, whilst operational delivery could allow for incremental valuation convergence towards Nestlé".
"That said, we do not think this decision should be seen as the last step before a split or that portfolio reshuffling is the only catalyst," Citi added.
After a 5% jump in the share price on Tuesday, Unilever's shares gave up 1% on Tuesday to trade at 3,889p.