Unilever: CEO to Retire; Berenberg Upgrades to Buy on Faster Growth Projections

By Senad Karaahmetovic 

Unilever (NYSE:) announced earlier today that its CEO Alan Jope has told the board about his plans to retire from the company at the end of 2023.

The company has initiated a formal search for a successor and will consider both internal and external candidates, it said in a statement.

Morgan Stanley analyst expects to hear more from the company during a Q3 earnings call on October 27. He said investors are likely to focus on whether the leadership change will also result in a change in strategy from a new management team.

For a Jefferies analyst, the CEO change is a positive development.

“The long lead time on his departure should facilitate continuity into what is a big organizational change,” he wrote in a client note.

In a separate note, a Berenberg analyst upgraded shares to Buy from Hold as the company is “repositioned for faster growth.”

“Higher category growth and better execution should enable Unilever to deliver organic growth at the upper end of its 3-5% mid-term guidance. The new business unit structure should enable faster growth, release cost efficiencies and increase portfolio management flexibility,” the analyst said in a note.

The new price target is 48 pounds a share, up from the prior 40.

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