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Ticker: ULVR.L
Target Price: GBp1,358.31
Current Price: GBp1,483.00 We reiterate the common stock a HOLD with a target price of GBP1,358.31.
ADR HOLD The ADR is expected to appreciate by approximately 5% over the next 6-24 months, as the 8%
fundamental downside is expected to be offset by approximately 13 percentage point upside
attributable purely to the anticipated appreciation of sterling against the US dollar over the same
period. We continue to value this stock over a 6-24 month investment horizon as we anticipate a
Ticker: UL significant currency impact on the US dollar.
Target Price: US$30.56
Current Price: US$29.09 We reiterate the ADR (1 ADR = 1 share) a HOLD with a 6-24 month target price of US$30.56.
Report summary
Although Unilever recorded healthy revenue growth from Asia Africa, this was significantly offset by
poor performance from the Americas and Europe, leading to a marginal 0.5% y-o-y growth in revenues
in 1Q 08. Management expects the implementation of its single SAP system program and other cost
saving initiatives to offset increase in costs. However, considering the challenging market conditions,
rising commodity costs and fuel prices; flat volumes and price growth in developed economies, we
believe Unilever’s margins will be negatively impacted, going forward. Therefore, we hold a subdued
outlook for the company.
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