11th November 2013
Stockbrokers are tipping Anglo-Dutch consumer brand giant Unilever as a share to snap up as the company makes robust progress in re-vamping the business writes Philip Scott.
The FTSE 100 listed firm and owner of many household brands including Marmite, PG Tips and Lynx has seen its shares fall by 11% over the past half-year but the last month has seen it claw back some of the drop with a 5% rise to circa 2,474p.
In its third quarter results reported last week underlying sales increased 3.2%, slightly below City forecasts, as growth slowed in emerging markets and currency weakness affected consumer demand in a number of emerging economies.
On the other hand, developed markets growth displayed respectable improvement despite overall performance for Unilever being down 0.3% in the quarter say analysts.
The broker consensus on share data website has the group rated a ‘buy’ as does Sheridan Admans, investment research manager at The Share Centre, who has labeled Unilever his ‘share of the week’.
He says: “Long-term, Unilever looks attractive as it endeavours to recover costs, expand into emerging markets and focus on profitable volume growth, together with improvement to cash flow, a strategy that has been paying dividends. It continues to deliver strong returns on capital employed in the business and grow its dividend.”