From Morningstar: 2025-05-20 08:49:00

Morningstar Equity Research is now covering Unilever (ULVR), a global leader in home, personal care, and packaged foods with 58% of revenue from emerging markets in 2024. The fair value estimate has been raised by 3% to EUR 59/GBX 4,940/USD 66. Shares offer a 6% upside potential with a wide economic moat rating.

Unilever shares have increased by 25% in the past 18 months due to strategic initiatives focusing on productivity savings, brand investment, and innovation efforts. The company’s wide moat rating is supported by strong retailer relationships, brand strength in key categories, and operational efficiency from scale advantages.

Under new CEO Fernando Fernandez, Unilever aims for consistent volume growth and mid-single digit organic sales growth. The focus is on market execution, scaled innovations, and portfolio rotation towards higher growth categories like beauty and wellbeing, leveraging the company’s presence in emerging markets.

In terms of key stats, Morningstar models 3.8% organic sales growth with 2.2% from volume. The 2029 operating margin forecast is 18.9%, reflecting improvements in gross margin and overhead reduction offset by brand and marketing reinvestment. The authors of the analysis do not own shares in any mentioned securities.



Read more at Morningstar: Raising Our Fair Value Estimate for Wide-Moat Unilever