Proactive Investors - Unilever (LON:ULVR) is the most compelling turnaround story in European staples, according to analysts at Barclays (LON:BARC), who have tweaked their price target up to £52 (£50 previously).
After two consecutive strong volume quarters this year’s second quarter could see a sizeable margin beat.
“We raise our topline, margin, and EPS estimates. Unilever is becoming a higher-growth, higher-margin business.”
New management remuneration KPIs are more aligned with shareholder interests said Barclays, which is especially happy with the new 30% weighting of TSR [total shareholder return] in management LTIP [share incentive plan].
“Unilever has used a more demanding peer group and on the TSR element will get a zero payout if it is below the 50th percentile over three years.
“This to us suggests management is very confident in delivering stepped-up EPS growth.
“Unilever is doubling down on 'hard currency' EBIT and EPS growth and no longer willing to hide behind 'constant' currency which has put off many investors in the past.”
Overweight is the investment rating.
Shares were up 1% at 4,330p.