Unilever shares were under pressure on Friday afternoon. This meant that the group returned to its market value for the second day in a row after the quarterly update, which experts said was disappointing. Reason for analysts from Barclays and Société Générale to lower their price target for the Unilever share.
According to SocGen, the group’s sales will continue to suffer from the corona crisis in the second quarter of this year. This mainly concerns sales of, for example, ice cream outside the door. In addition, many consumers took a big hit in March out of fear of the crisis, which means that they can also live on stocks for the time being. The bank lowered its target price by one euro to 38 euros.
Barclays also expects sales to come under pressure in the second quarter. The analysts use the same argumentation as SocGen for this. Ice cream sales and the food service, which is the most painful, account for 10 percent of Unilever’s sales, say the connoisseurs.
The weak performance of ‘homecare’ in the first quarter was largely due to the lockdown in India. Barclays thinks the demand for these products remains strong, even after the corona pandemic is over. The target price for Unilever went from 50 to 48 euros.
Barclays uses an equal weight advice on Unilever. SocGen recommends a sale of the share. Friday around 4.10 pm Unilever recorded 1.4 percent lower at 45.25 euros.