Unilever’s share price is down by less than a percentage point in the early hours of today’s trading session. The drop also marks a second consecutive day that we are seeing it falling in the markets.
The drop comes amidst reports that a federal judge, on Monday, rejected a request by Ben & Jerry’s to block a plan by Unilever to sell their products in East Jerusalem and the occupied West bank against their wishes. According to the court ruling, the company failed to show that Unilever’s action would hurt its social mission or confuse its customers.
The court ruling was a positive outcome for the company, bringing to a conclusion a case that had lasted for months. Looking at the Wall Street ratings, the Unilever share price has received a mixed review by most financial institutions. For instance, the Royal Bank of Canada has set its price target at GBX 3,400, indicating a possibility that the prices may fall further.
On the other hand, Berenberg Bank has also had a mixed view of the Unilever share price, advising on a hold position while still setting a price target of GBX 4,000, which is above today’s trading price of 3950p.
However, Goldman Sachs Group has given Unilever a price target of GBX 4,100, which will greatly improve the current prices the shares are trading at. Jefferies Financial Group has also set a bull price target of 4,130.
Despite today’s price drop, my Unilever price prediction is still to the upside. In my opinion, the past few days have been very positive for the company, including the win over Ben & Jerry’s, which has dragged in court for weeks.
Therefore, my price target for Unilever shares is for prices to trade above the 4100p price level in the next few trading sessions. There is also a high likelihood that prices may end up trading above the 4150p within a month despite rising inflation and markets posting losses. My analysis will be invalidated should the prices trade below the 3835 demand level.
This post was last modified on %s = human-readable time difference 12:05