Warsaw, Poland - July, 2020: Unilever logotype on the top of office building
Unilever was down by 0.3 per cent in yesterday’s trading session, and today, the prices are likely to continue with the downward trend. The past few weeks have also been tough on Unilever’s share prices, recording a drop in eight of the last nine trading sessions.
A recent JPMorgan Chase & Co. analysts report indicated that Unilever (LON: ULVR) had a 3,600p price target. The analysis was based on a potential downside of 0.92 per cent from the company’s previous session close. JP Morgan analyst Celine Pannuti also reiterated Unilever’s sell rating would remain, adding that the 3,600p target price would remain unchanged.
On the other hand, Deutsche Bank remained neutral but set its price target to 4,600. Unilever also reaffirmed its neutral rating on the Unilever share price, setting its target price to 3,500p. However, other analysts were more bullish, with Credit Suisse group setting a target of 4,600p for the Unilever share price.
The growing inflation concerns in the UK and across the world have created a tough environment for Unilever’s share price to grow this year. This has seen the shares drop by 9 per cent in 2022.
Inflation has also directly impacted Unilever, a leading consumer staples company that sells household items. Its response has been to increase the prices of its products to cover the increasing cost of operations. Unfortunately, the hike in prices has consequences, with most consumers having to forego buying Unilever products.
The result is what we are seeing in the markets today, with prices continually falling. Therefore, my Unilever share price analysis expects the prices to continue falling, with a likelihood of trading below the 3,500p price level. However, if the market conditions improve, then there is a chance we may see Unilever shares recovering in the market. As a result, my bearish trend analysis will also be invalidated.
This post was last modified on Jun 14, 2022, 11:24 BST 11:24