Deutsche Bank has downgraded Unilever plc from Buy to Hold, assigning a price target of GBP51.50 (5,150 pence), and pointing to valuation pressures after the stock's recent advance. The move reflects the bank's view that the shares now trade at a premium relative to both the broader market and sector peers.
Market information cited alongside the bank's note shows Unilever trading at $72.12, roughly 0.98% shy of its 52-week high of $73.87. Technical measures flagged by third-party data indicate the stock is in overbought territory, consistent with the firm price moves recorded over recent weeks.
Deutsche Bank highlighted that Unilever's share price has risen 10% over the last month and 14% since January lows, driving the stock to trade at about 19 times forward 12-month price-to-earnings. The bank also noted the shares are valued at a roughly 19% premium to the market. Independent data cited in the bank's commentary show a 10.28% year-to-date price return and a current P/E ratio of 20.17.
On relative multiples, Deutsche Bank observed that Unilever's P/E ratio versus its sector coverage has reached an all-time high. The bank added that the company's valuation is approaching historic peaks when compared specifically with European home and personal care and food peers. The shares' Price/Book ratio of 7.54 was highlighted as further evidence of a stretched valuation.
Despite these valuation concerns, the bank acknowledged potential upside from a rotation into consumer staples and expressed approval for the transformation efforts under Unilever's current chief executive. Nevertheless, with the stock trading modestly above Deutsche Bank's GBP51.50 target, the firm concluded that a Hold rating is now appropriate.
Corporate and analyst developments
Separately, Unilever announced the sale of its Graze snacking business to Katjes International. Under the transaction, Graze will join the Candy Kittens group in the United Kingdom. Financial terms for the deal were not disclosed.
Analyst houses have adjusted their models and targets in response to recent company commentary and strategic moves. TD Cowen lowered its price target for Unilever to $70.00 from $71.00 while retaining a Buy rating. That adjustment follows management remarks that prompted a revised fiscal year 2026 growth forecast of 3.8%, excluding the Ice Cream division. TD Cowen also lowered its target in British pounds to GBP520 from GBP530.
In contrast, Rothschild Redburn raised its price target on Unilever to GBP53.50 from GBP52.00, maintaining a Buy rating. The firm tied its higher target to progress on Unilever's planned demerger of the ice cream business, which it said is proceeding as planned.
Collectively, the broker updates and the Graze disposal illustrate active strategic adjustments at Unilever and a range of analyst responses to the company's evolving portfolio and guidance.