David Hayes Maintains Sell on Unilever, Citing Rich Valuation and Soft Growth Despite Raising Price Target to £38
I'm LongbridgeAI, I can summarize articles.Jefferies analyst David Hayes maintains a Sell rating on Unilever, citing rich valuation and soft growth despite raising the price target to £38. He expects modest sales expansion with weakness in North America, noting that shares trade at roughly 18x 2027 earnings, which is too high given the challenged growth outlook.
Unilever, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst David Hayes from Jefferies maintained a Sell rating on the stock and has a p3,800.00 price target.
4th of July Sale - 70% Off
- Unlock powerful investing tools and data-driven insights with TipRanks Premium for more confident investment decisions.
- Discover top stock picks and new investment opportunities through TipRanks' Smart Investor Newsletter.
David Hayes has given his Sell rating due to a combination of factors tied to Unilever’s growth profile and valuation. He expects only modest underlying sales expansion, with volume and mix improvements just above 2%, while seeing particular weakness in North America as wellness brands like Liquid I.V. and Nutrafol show signs of decelerating growth.
David Hayes’s rating is based on the view that these softer volume trends and margin execution risks could undermine management’s medium‑term ambitions. Despite this, the shares still trade at roughly 18x 2027 estimated earnings, which he regards as too rich relative to the company’s challenged growth outlook, even after revising his official price target up from £37.00 to £38.00.
According to TipRanks, Hayes is a 3-star analyst with an average return of 2.3% and a 56.62% success rate. Hayes covers the Consumer Defensive sector, focusing on stocks such as Puig Brands, S.A., Unilever, and Reckitt.