Unilever PLC (LSE:ULVR) is entering what analysts at Barclays and JPMorgan believe is a game-changing period after scooping out its ice cream arm.
"We believe 2026 will be Unilever’s inflection point," said Barclays, predicting a year when the Marmite, Hellmann's, Comfort and Domestos maker will "prove its volume muscle".
The bank argued the FTSE 100 giant is becoming a higher-growth, higher-margin business, as has started to be proved with its strong recent volume momentum.
Unilever is “shifting from mass to premium", with the demerger of Magnum Ice Cream moves the emphasis away from foods towards home and personal care, as well as "doubling down on the US and India as twin growth engines".
Barclays added that gross margins are narrowing the gap with global peers and that non-ice cream EBIT margins are set to hit 20%.
The bank said the market had focused too heavily on the separation and senior leadership changes.
"Unilever is only halfway through its transformation, but the building blocks are in place for sustainable, superior growth. With a premium portfolio on track for a 50% mix in time, a marketing engine powered by AI and advocacy, and a relentless focus on execution, we believe Unilever is set to deliver the catch-up the share price deserves," said Barclays, keeping its 'overweight' rating.
Also reiterating an idential rating, JPMorgan's arguments were similar, saying that following the separation of the ice cream business, "Unilever offers the potential for a re-rating as the company executes on its transformation towards becoming a more beauty and personal care company".
The bank highlighted Unilever’s balance sheet flexibility, with leverage of around two times EBITDA enabling bolt-on acquisitions and buybacks.
"Unilever’s advantage rests in its ability to outperform its categories thanks to stronger marketing execution and focus on premiumization.
"This has already paid off in developed markets, and we expect emerging markets growth to accelerate in 2026."
The bank said the shares trade on 15.6 times 2027 earnings on an ex-ice cream basis, a valuation multiple it sees as "compelling" and one that makes the stock one of its top picks for 2026.