Emerging Markets Shine for Unilever

Soft consumer spending and persistent cost inflation have yet to abate, but Unilever remains on the right course

Erin Lash, CFA 9 November, 2011 | 6:19PM
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Macroeconomic headwinds such as soft consumer spending and persistent cost inflation have yet to abate, as evidenced by Unilever's (UNLV) third-quarter trading update. However, we continue to believe that with a strong brand portfolio and expansive global distribution network position, the global consumer product firm is well positioned to operate through what continues to be a challenging period. We aren't making any changes to our outlook or our fair value estimate, as results through the first nine months of fiscal 2011 are tracking in line with our forecast. At 14 times our fiscal 2012 earnings per share forecast, the shares appear fairly valued at current market prices.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Unilever PLC3,885.00 GBX1.94Rating

About Author

Erin Lash, CFA  Erin Lash, CFA, is a senior stock analyst with Morningstar.

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