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Berenberg lowers Unilever to hold

Wed 18 Feb 2026 08:29

(Sharecast News) - Analysts at Berenberg downgraded consumer goods giant Unilever from 'buy' to 'hold' on Wednesday, stating the company has, in its view, completed its transformation into "a simpler, more agile, faster-growing and more profitable business" than it was two to three years ago. Berenberg stated that following Unilever's recent share price performance, it believes that the firm's transformation was now well reflected in the stock's valuation.

"Our FY26 EPS forecasts are 1.4% lower as we update for the recent 2025 results release and tweak our organic sales growth, currency and average cost of debt assumptions," noted Berenberg, which upped its target price on the stock from £56 to £58.40 per share.

The German bank also noted that following the stock's strong year-to-date performance, Unilever now trades on a 12-month forward price-to-earnings ratio of 19.6x - a 17% premium to its five-year average multiple.

"Relative to its global staples peers (Haleon, Beiersdorf, Colgate, Nestlé, Henkel, P&G and L'Oréal), Unilever's P/E is also 17% higher than its five-year average. This suggests the company's turnaround is now better reflected in its stock price," added Berenberg.

Reporting by Iain Gilbert at Sharecast.com

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