JP Morgan has upgraded Unilever PLC (LSE:ULVR) from 'underweight' to 'overweight', setting a new share price target of €60/£51, up from the previous €41/$36.
This double upgrade was sparked by significant improvements in Unilever's operations and market strategy, the investment bank said in a note.
It cited the Anglo-Dutch giant's cultural and corporate governance reforms, enhanced market share through increased investments and strategic portfolio changes. Over the past year, these adjustments have addressed long-standing concerns about the company, JPM said.
It also noted a recovery in volume levels in Unilever's European, Nutrition, and Ice Cream segments. Additionally, fears of price declines have not materialised.
This has led to stronger projections for the fiscal year 2024, with JPM expecting a 2.9% increase in volume growth and earnings per share (EPS) ahead of consensus estimates by about 3%.
The bank also raised its EPS estimates for 2024 and 2025 by 2.5% and 6%, respectively, placing Unilever on 'positive catalyst watch' due to anticipated strong second-quarter like-for-like growth and first-half margins, with results due on July 25.
In early afternoon trading the shares were up 1% at 4,320.05p.