CICC initiates Unilever coverage with an Outperform rating.

CICC initiates Unilever coverage with an Outperform rating.

CICC, a leading financial services firm, has initiated coverage on Unilever PLC (Unilever) with an "outperform" rating. This rating, as announced on July 2, 2025, reflects CICC's bullish outlook on the company's financial prospects and growth opportunities. Unilever, one of the world's largest suppliers of Beauty & Personal Care, Home Care, and Foods & Refreshment products, operates in over 190 countries and reaches 3.4 billion consumers daily [1].

Unilever's strong position in developing and emerging markets, with over half of its footprint in these regions, is a significant factor contributing to its robust growth. The company's portfolio includes well-known brands such as Dove, Knorr, Dirt Is Good, Rexona, Hellmann's, Lipton, Wall's, Lux, Magnum, Axe, Sunsilk, and Surf [1]. Additionally, Unilever's commitment to sustainability through its Unilever Sustainable Living Plan (USLP) has been instrumental in driving value creation, reducing costs, and mitigating risks [1].

The company has made substantial progress under the USLP, with a focus on improving health and well-being for over a billion people, halving its environmental footprint, and enhancing the livelihoods of millions as it grows its business. Unilever has also set ambitious targets, such as ensuring 100% of its plastic packaging is fully reusable, recyclable, or compostable by 2025 [1].

Institutional investors have shown increased confidence in Unilever, with several hedge funds and asset management firms recently adjusting their stakes in the company. For instance, Tocqueville Asset Management L.P. reduced its stake by 5.4%, but still holds 567,001 shares valued at approximately $33.8 million [2]. Raymond James Financial Inc. increased its holdings by 7.1% during Q1, owning 3,340,231 shares valued at approximately $198.9 million [3]. Other institutional investors, such as Bank of New York Mellon Corp, Stonegate Investment Group LLC, Banco Santander S.A., Value Partners Investments Inc., and Allspring Global Investments Holdings LLC, have also increased their stakes in Unilever [3].

Analysts have provided mixed ratings for Unilever, with some upgrading the stock to "strong-buy" or "outperform," while others have maintained a "hold" or "underperform" rating. BNP Paribas Exane, for example, set an "outperform" rating with a $73.00 target price, while Jefferies Financial Group reiterated an "underperform" rating [2][3]. Despite the mixed ratings, the consensus rating is "Moderate Buy" with a target price of $72.50 [2].

Unilever's recent quarterly dividend increase to $0.5175 per share, representing an annualized dividend of $2.07 and a yield of 3.4%, has been well-received by investors. The company's dividend payout ratio (DPR) is currently 59.31% [2].

In conclusion, CICC's "outperform" rating on Unilever reflects the company's strong market position, robust growth prospects, and commitment to sustainability. The mixed analyst ratings and increased institutional ownership indicate a cautious but optimistic view on the company's future performance.

References:
[1] https://www.marketscreener.com/news/cicc-kicks-off-unilever-coverage-with-outperform-rating-ce7c51d3de8ef02c
[2] https://www.marketbeat.com/instant-alerts/filing-unilever-plc-nyseul-shares-sold-by-tocqueville-asset-management-lp-2025-08-16/
[3] https://www.marketbeat.com/instant-alerts/filing-raymond-james-financial-inc-buys-221958-shares-of-unilever-plc-ul-2025-08-18/