Unilever PLC (UL), a consumer packaged goods company, has been one of the standout performers in 2024, raking up gains as high as 26.62% year-to-date.
Despite the bullish 2024, Stockoptionscalculator.com analyst Rahul Nambiampurath believes that UL might still have the legs to gain another 15% at least by the time 2024 concludes.
Rahul mentions, “Unilever’s consistent performance across all business groups and geographical regions highlights its ability to navigate economic uncertainties.”
He has adequate insights to validate this statement.
The road ahead for Unilever PLC: Fundamentals and financials
Rahul took a deep dive into Unilever plc’s fundamentals and came up with the following factors that underpin his positive outlook:
- Unilever’s extensive collection of popular brands, such as Dove, Hellmann’s, and Vaseline, provides a stable revenue stream and indicates strong brand loyalty.
- The company’s presence in nearly 200 countries eliminates regional risks, even across emerging markets.
- Unilever’s heavy investment in R&D ensures that it stays ahead of market trends. This hints at innovation like no other.
The Q2 2024 financial report, released on July 25, 2024, has the following bullish pointers:
- Revenue: 16 billion Euros, translating to a 5.4% surge year-on-year.
- Geographical Performance: Asia Pacific Africa (6.9 billion Euros in sales), The Americas (5.8 billion Euros), and Europe (3.3 billion Euros).
Rahul believes that looking ahead, Unilever is expected to continue its strong performance in Q3 2024, driven by productivity savings and increased marketing investment. But then, the price action has to agree, right?
What is the price action saying?
Rahul took the UL analysis one step further with a detailed price analysis. The analysis validates the bullish momentum UL gained once the prices breached the $56.60 point. At present, UL is trading at $61.49, with a gap-up price move surfacing. However, most stocks tend to correct post-gap-up formations, and for UL, a correction could push the prices back to the $57 level — a strong support zone — allowing entry to new buyers.
UL price action: TradingView
Post-correction, if the bullish momentum continues, you can expect UL to move as high as $64.5 and even $70, which would translate to almost 15% gains.
Robert Moskow, an analyst at Cowen, shares Rahul’s thoughts, giving UL a “Buy” rating and a price target of $67.
