Although Unilever PLC (LSE:ULVR) took a few body blows over its failed bid for GSK’s healthcare arm, it is finding more friends in the City.
RBC Capital Markets is the latest, removing what was effectively a ‘sell’ rating and upgrading to ‘sector perform’, with the share price target increased to 3600p, although that is still below the last close price of 3810p.
While the Hellmann’s, Marmite and Ben and Jerry’s owner got it wrong in the past with management, RBC believes there are now signs “that the stars are starting to align”.
How much can be put down to the involvement of billionaire Nelson Peltz remains to be seen, but a board reorganisation and a new “humble tone from senior management” is an encouraging sign for RBC.
Unilever, whose share price has remained stagnate over the last five years, still “far from delivering sector leading consistency”, with RBC also noting that any reorganisation comes with risk.