UL Should I Buy
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Unilever PLC is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is currently overbought based on RSI, and analysts have recently downgraded their ratings citing valuation concerns. While the company has announced a share buyback plan, its financial performance shows a decline in turnover, and hedge funds are selling the stock. Given these factors, it's better to hold off on buying for now.
The stock is in an overbought condition with an RSI of 84.795. The MACD is positive but contracting, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The price is near its resistance level of 74.768, indicating limited short-term upside potential.
Unilever announced a €1.5 billion share buyback plan, which could provide some support to the stock price. The company is also focusing on structurally faster-growing segments like beauty, wellness, and personal care.
Hedge funds are selling the stock, with a significant 443.74% increase in selling activity over the last quarter. Analysts have downgraded the stock due to valuation concerns, and the company reported a 3.8% decline in turnover for FY 2023.
Unilever reported FY 2023 non-GAAP EPS of €3.08 and a 3.8% decline in turnover. While the share buyback plan is a positive, the declining turnover raises concerns about growth.
Recent analyst ratings are mixed to negative. Deutsche Bank downgraded the stock to Hold, citing valuation concerns. UBS lowered its price target, and BNP Paribas downgraded the stock to Neutral. However, Morgan Stanley resumed coverage with an Overweight rating, citing growth in faster-growing segments.
