Unilever Share Discussion Threads

[dancing piranha] 08/3/2024 23:13

A miracle perhaps?

[alotto] 08/3/2024 09:56

What would it take to see Unilever trading around its historical high of about £50 per share?

[mastey] 08/3/2024 09:03

Won’t be surprised if it goes below 37 before update near the end of April.

[mastey] 07/3/2024 12:03

In addition I read the recent Morgan Stanley broker downgrade. Easy to pick so many holes in it. Anyway all this co and ABF can do is keep buying back there shares in the cheap .

[mastey] 07/3/2024 11:52

I believe Porsche is talking about the whole Uk market is going nowhere. The market is just not currently valuing stocks correctly. There is just no interest in allocation to UK listing. Unfortunately this is not new. Now Unilever is a global co thus it should have international appeal . However UK managers have maxed out on their allocation to this co and simply won’t allocate further and it won’t get any pick up via ETF allocations as FTSE is out of favour.

The market confirms all of this via the constant PE purchases of small , mid cap UK with massive premiums to current share prices.

Finally what we see after results of Unilever and ABF as an another example , an immediate mark up then a constant drain down until next results as they are just not getting a bid. Last results shown increase in sales for the first time in a while. P &G however continued to see sales full in their results. Just look at the difference in performance. It’s crazy but I can’t see it changing. Time for Unilever and ABF to follow others and move from UK listing .

[alotto] 07/3/2024 10:50

Also predicting currency exchange movement is very difficult and dependent on an enormous number of factors. I don't see sterling going to parity to euro. Interest rates in the UK are higher than in Europe. The exchange rate can turn disadvantageous for the GBP if the economy won't be able to capitalize on lowered interest rates, if that is going to happen this or next year. Meantime the UK is in a very mild recession, despite the high rates and inflation.

[alotto] 07/3/2024 10:28

Btw a change is not going to happen overnight.

[alotto] 07/3/2024 10:28

Porsche I understand your disappointment. I think Unilever has a lot of untapped potential in Asia and South America and the opportunity to regain a dominant position in Europe.
Pelts has much more experience than you do in the field of giants FMCG, so I'd let him give it a shot with Unilever.

[porsche1945] 07/3/2024 10:18

Down over five years, taking into account inflation the loss on the capital probably 30 pc plus over that time with 20 pc returned in dividends….so an investment in this showing about 12/13pc loss over 5 years in adjusted “ returns “. What a pos. Just buying a dirt cheap tracker for S&P or Nasdaq you would have doubled your money and had a gain on the USD appreciation, just shows the utter pointlessness of buying ftse shares, brexit basket case U.K. is doomed, ftse isn’t going anywhere and sterling is heading to parity with euro and usd. Shocking.

[unastubbs] 05/3/2024 18:29

B&J was bought in 2000. Jope appointed CEO in 2019. But I agree, the Ben & Jerry's structure is ridiculous and Jope a poor CEO. Carver and DSC can be credited to him. I believe he headed the business group responsible at the time of their purchases. Interestingly, Schumacher is sticking with Carver...

[alotto] 05/3/2024 15:53

ChaChaCHa The new management has dropped the woke agenda. Only issue is Ben and Jerry, since the board is relatively independent from the parent company. It is not even that easy to fire the management in B&J due to the structure of the agreement make with Unilever. Jope was a disgrace on so many levels.

[chachacha] 29/2/2024 16:58

Time to drop the PC nonsense. Otherwise it will follow AB InBevhttps://www.telegraph.co.uk/business/2024/02/29/bud-light-trans-boycott-world-biggest-brewer-ab-inbev/Appease a few % and anger 90% does not improve sales.

[suetballs] 29/2/2024 07:47

Some reason for optimism then.
Suet

[philanderer] 29/2/2024 00:02

Fundsmith AGM: Unilever tirade softens as stock tipped for big win


Fundsmith Equity manager Terry Smith believes the tide may be turning at Unilever (ULVR) after being a longstanding vocal critic of the consumer staples giant.

Speaking at his £24.1bn open-ended fund’s annual general meeting (AGM) at London’s Central Hall Westminster, Smith said that although he still worries about Unilever, he believes its new management is ‘actually pretty decent’.

Smith’s right-hand man and head of research, Julian Robins, tipped the company as having ‘potentially the most upside’ in the portfolio this year. It currently makes up 3.1% of the fund.

Unilever (ULVR) has featured in the portfolio since the fund’s launch in 2010. However, the stock has been a serial underperformer of late. Over five years, its share price has dropped 2.3%.

Smith added that despite his previous qualms about Unilever’s management, the company has a huge scale of distribution, with nearly half the global population using its products.

Several other top fund managers have been buying into Unilever in recent months.


citywire.com

[chachacha] 28/2/2024 12:06

buybacks never work. look at VOD. shows lack of management ambition and ideas. pure laziness.

[alotto] 28/2/2024 11:41

Anhar disappointing innit. Considering that last year they bought back about 3 billion pounds worth of shares, the dividend payout should have increased by 3% at least. Now a new buyback of 2 billion pounds. Was it not better to return the excess cash directly to the shareholders as a special dividend I wonder.
Massive price hikes in stores and no tangible returns for the shareholders. Where is the money going? Is Unilever being blackmailed by its suppliers?
Is Unilever personnel doing any work at all or are they too busy with company events and team building activities?

[philanderer] 28/2/2024 00:36

Thanks alotto :-)


Mixed...

27th feb Morgan Stanley underweight tp 3775p
14th feb DZ Bank hold tp 4300p
13th feb Goldmans neutral tp 4505p
9th feb UBS sell tp 3430p
9th feb Jefferies underperform tp 3400p
9th feb Berenberg buy tp 4960p



8th feb ++++ Results ++++

[alotto] 27/2/2024 15:04

Thanks Philanderer.
I found a fuller statement:

(Sharecast News) - Morgan Stanley downgraded Unilever on Tuesday to 'underweight' from 'equalweight' and cut the price target to 3,775p from 4,100p.

The bank said that while it's not significantly below consensus on earnings, it thinks Unilever's re-rating - to a small premium to Staples - is overdone, particularly given weaker cash conversion and higher emerging markets exposure, relative to peers.

Morgan Stanley noted that following a stronger performance in recent weeks, Unilever now trades at 17.6x 2024e price-to-earnings versus European Staples overall, on 17.4x.

"With correlation between organic sales growth and P/E particularly strong in this sector, the fact that Unilever's medium-term growth rate looks likely to be broadly consistent with the rest of the sector suggests that a re-rating is unlikely," it said.

"Meanwhile, given weaker cash conversion versus other HPC peers - the company has consistently high restructuring charges which it excludes from underlying EPS and operating profit - the stock currently offers only a 3.4% unlevered free cash flow yield for FY24."

MS said that while it thinks management's strategy looks sensible, it is unclear what will drive a further re-rating over the next twelve months. The bank said the valuation seems to already be pricing in successful execution.

"Management has been clear that reinvestment will take time, and the company operates in highly competitive categories," it said.

The bank said within HPC, its top pick is Haleon, which it likes for its exposure to consumer health - a category with high brand loyalty and potential value creation from general industry consolidation.

It also likes L'Oreal for its pure-play exposure to global beauty, which offers higher structural growth, and for its "juggernaut industry status, which allows it to spend more on marketing and innovation than any other industry player".

At 1340 GMT, Unilever shares were down 2.1% at 3,912.87p.

[philanderer] 27/2/2024 14:15

Market report.

.
"....Imperial Brands fell amid reports the government may announce a new vaping tax at next week’s Budget, while Unilever lost ground after a rating downgrade at Morgan Stanley "


Sharecast

[alotto] 27/2/2024 10:24

Seems £40 is the absolute ceiling for now. At least until the next trading update at the end of April.

[alotto] 14/2/2024 14:28

If I was to match P&G valuation I get a share price of about £65.

[giltedge1] 11/2/2024 08:42

£50 is valuation based on P&G selling at PE 26. Take a while to reach that as long as volume growth Q1 & buyback starts in April hopefully £45 later in year. Shares can be undervalued for a long time many factors economy interest rates etc but ULVR seem on track with new team & great subsidiaries in India China & USA. UK only 2% of revenue.

[alotto] 10/2/2024 09:05

Is £50 your 1-year forecast? The dividend yield would drop to 3% with a valuation of £50. £50 is a realistic projection only if dividends are increased by 25%, which I doubt will happen.

[giltedge1] 10/2/2024 08:47

Sorry typo 2023 volume increase of course & projected to increase in 2024 as well.