Unilever assumed with Underperform from Buy at Jefferies

Jefferies analyst David Hayes double downgraded Unilever to Underperform from Buy with a price target of 3,300 GBp, down from 5,000 GBp, after assuming coverage of the name. The firm is cautious on the food and household and personal care sector as it expects a further year of de-rating, catalyzed by below-consensus estimates. The analyst prefers value names with operating margin upside, or good categories not fully valued, while avoiding “those with meaningful reinvestment still needed” or priced for “perfection.”