Procter & Gamble Co. (PG)

$ 165.18
   
  • Change Today:
    $-0.98
  • 52 Week High: $177.79
  • 52 Week Low: $143.91
  • Currency: US Dollars
  • Shares Issued: 4,009.20m
  • Volume: 6,055,808
  • Market Cap: $662,240m
  • RiskGrade: 76

UBS stays at sell on Unilever, cites concern about 'deterioration' of market share

By Alexander Bueso

Date: Friday 22 Oct 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at UBS reiterated their 'sell' recommendation on shares of Unilever, expressing to clients their concern over the "quality" of the company's margins in the back half of the year, which they said implied a "substantial" reduction in its marketing spend.
First, UBS noted that the company's announcement of a near 100 basis point decline in gross margins year-to-date implied a roughly 150-200bp drop for the third quarter despite a quarter-on-quarter increase in pricing from 1.3% over the first six months of the year to 4.1% over the three months to September.

Furthermore, the consumer goods giant had also reiterated its guidance for full-year 2021 operating margins to be "around flat" year-on-year thanks to multiple factors.

Those included revenue growth management initiatives, savings from efficiencies, some benefit from the unwinding of the Covid-19 on costs and mix and from adjusting Brand and Marketing investments.

But the analysts were now concerned that Unilever might lose some market share after several large fast-moving consumer goods rivals, such P&G, Loreal or Nestle, had flagged their intention to ramp-up marketing spend.

"We worry that Unilever's decision could soon translate into some deterioration in market share development and/ or does simply evidence a less marketing intensive portfolio with limited scope for premiumisation relative to peers."

UBS kept its target price for Unilever at 3,700.0p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Procter Gamble Market Data

Currency US Dollars
Share Price $ 165.18
Change Today $ -0.98
% Change -0.59 %
52 Week High $177.79
52 Week Low $143.91
Volume 6,055,808
Shares Issued 4,009.20m
Market Cap $662,240m
RiskGrade 76

What The Brokers Say

Strong Buy 7
Buy 10
Neutral 7
Sell 1
Strong Sell 0
Total 25
buy
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Trades for 31-Oct-2024

Time Volume / Share Price
16:00 1,489,458 @ $165.18
15:59 100 @ $165.18
15:59 100 @ $165.17
15:59 116 @ $165.16
15:59 100 @ $165.16

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