Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Broker tips: Unilever, EasyJet
(Sharecast News) - Analysts at Deutsche Bank upgraded consumer goods company Unilever to 'buy' from 'hold' on Wednesday, stating prospects had now improved for the group. Deutsche Bank said commodity headwinds were now turning to tailwinds for 2023, which offered Unilever the potential for margin increases, while many other companies in the market will likely be seeing margins decline.
The German bank, which kept its 4,600.0p target price unchanged, also highlighted that whilst it was still early days, there appeared to be more commitment on behalf of Unilever's management to spend on advertising and promotion and research and development.
"We expect the market will be prepared to pay a higher multiple for a company that is more fully invested and with better compounding growth prospects than one which is trying to protect profitability," said DB. "A change in the commodity cycle can enable this change in stance (as well as support from a revised board)."
Analysts at Berenberg slashed their target price on low-cost carrier EasyJet from 750.0p to 560.0p on Wednesday but said the group's "messy" third-quarter performance had masked its "significant" deleveraging.
Berenberg said EasyJet had finished the third quarter of its trading year with net debt of just £200.0m, roughly 0.2x EBITDAR, down from approximately £350.0m back in summer 2019.
"This reduction in net debt, coupled with the share price's recent weakness leaves the carrier trading on an EV/IC of just 0.6x, slightly below where it troughed in 2008," said Berenberg.
Although the German bank acknowledged that EasyJet's handling of the June quarter had been "less than perfect", disruption at airports was now easing at the same time as the airlines' summer schedules become "more achievable" than before.
"Moreover, EasyJet's balance sheet is now in a strong position to weather a slowdown should one materialise, with liquidity of circa £5.0bn representing 15 months of Covid-19 cash burn on our estimates," said the analysts, who also reiterated their 'buy' rating on the stock.
"We cut our price target to 560.0p to reflect recent operational disruption and a slower profit recovery than expected before."
Reporting by Iain Gilbert at Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
