13th July 2015
With UK consumer spending set to hopefully rise from its current levels a number of brokers have come out in support of FTSE 100 giant Unilever and are calling it a ‘buy’.
The group, whose brands include house hold names such as Dove, Sure, Ben & Jerry’s and PG Tips, has enjoyed a near 9% share price rise over the past year but over three months the stock is off by 4%, which may now be representing a buying opportunity.
While the market consensus has the stock down as a ‘hold’, analysts at Barclays Capital, RBC Capital Markets and The Share Centre have all just released positive notes on the firm.
Ian Forrest, investment research analyst at the latter firm is particularly upbeat on its prospects right now, given that as he sees it, “current consumer spending in the UK is on the rise and looks to be performing healthily, which should support the group’s desire to grow its sales”.
In addition, the company is also looking to improve in emerging markets. Forrest said: “Investors should appreciate that when looking at the group’s recent track record we can see that it has outperformed the market over the past year. Those more interested in income should also note that the group’s prospective dividend yield of 3.2% is reasonable and expected to rise well ahead of inflation over the next couple of years.
“With sales in North America on the rise and volumes across Europe generally picking up, investors can be encouraged by Unilever’s progress. The group’s large and diverse range of well-known global brands may provide some level of security for its investors.”