On Tuesday, Morgan Stanley lowered its recommendation on Unilever shares from 'in-line weighted' to 'underweight', with a price target reduced from 4,100 to 3,775 pence.

In a research note, the consultancy believes that the stock's recent rally is 'overdone'.

Following its rebound in recent weeks, the stock is now trading at a PER 2024 of 17.6x, a slight premium to the rest of the consumer staples sector, which is trading at 17.4x earnings, the analyst points out.

An unjustified phenomenon, according to the intermediary, given the Anglo-Dutch FMCG group's low earnings-to-cash conversion rate and its high exposure to emerging markets.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.