Deutsche Bank has maintained its Hold rating on Unilever (LSE:ULVR) with a 5150p price target, implying roughly 13% upside from the last close of 4551p, as analyst Tom Sykes flags a likely strong first half offset by mounting second-half headwinds.
Sykes argues that Unilever, the British-Dutch consumer packaged goods giant behind more than 400 brands, probably enjoyed a favourable Q2 driven by FIFA-related activations in North America and the timing of shopping festivals, alongside market share gains in India.
The cautious stance hangs on two H2 risks: at least a partial reversal of the US Wellbeing brands improvement, and a deceleration in underlying Indian demand severe enough that, if share gains ease, the analyst does not rule out negative volume growth in the country at some point.
Sykes also dismissed a widely held concern that the proposed combination of Unilever Foods with McCormick, targeting completion by mid-2027, would disrupt execution in the Home and Personal Care division, saying there would have been no evidence of such an effect in the first half results.
