Unilever: Valuation Risk, Earnings Pressure, and Execution Uncertainty Drive Sell (Underperform) Rating into 2026

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2026.01.07 00:26
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David Hayes from Jefferies has maintained a Sell rating on Unilever, raising the price target to p4,100.00. He cites concerns over valuation, earnings pressure, and execution uncertainty as the company approaches 2026. Hayes predicts a decline in the stock's price-to-earnings multiple from 17x to 15x, with profitability under pressure and limited earnings growth. He also notes potential volatility in operating margins and a slowdown in the U.S. market, alongside risks from the planned ice cream business spin-off, reinforcing his cautious outlook.