Unilever PLC (LSE:ULVR)’s pricing momentum supports the group’s growth outlook, according to analysts at Goldman Sachs (NYSE:GS), as it maintains its neutral rating on the stock.
Ahead of the consumer goods company’s third-quarter results next month, Goldman Sachs (NYSE:GS) expects it to report 8.5% organic sales growth, ahead of the consensus at 7.9%.
Specifically, the bank believes that while it still sees a risk in volume/mix, it does not expect elasticities to deteriorate, and forecasts third-quarter trends to be like the second quarter.
For the full year, it forecasts organic growth of 7.8%, compared to guidance of above 6.5%, largely driven by pricing with some pressure on volume, said Goldman Sachs.
The note came out before Unilever's chief executive Alan Jope announced his departure this morning (read more)