• UBS maintains a "Sell" rating on Unilever PLC (NYSE:UL), adjusting its price target to reflect potential challenges.
• The demerger of Unilever's ice cream, tea, and coffee businesses raises concerns about market growth and earnings dilution.
• Despite market skepticism, Unilever remains optimistic about its future performance, aiming for mid-single-digit underlying sales growth.

Unilever PLC, listed on the NYSE under the symbol UL, is a global consumer goods company known for its diverse range of products, including food, beverages, cleaning agents, and personal care items. Recently, the company has undergone significant changes, including the demerger of its ice cream arm, The Magnum Ice Cream Company. This strategic move has sparked varied reactions from analysts and investors.

On December 10, 2025, UBS maintained its "Sell" rating for Unilever, with a "hold" action, reflecting cautious sentiment towards the company's future performance. At the time, the stock was priced at $64.14. UBS also adjusted its price target for Unilever from 4,635 GBp to 4,440 GBp, indicating potential challenges ahead, as highlighted by UBS.

The demerger of Unilever's ice cream, tea, and coffee businesses has raised concerns about market growth and earnings dilution. UBS's revised price target suggests an 8.4% potential downside from the current share price of 4,847p. Despite these concerns, Unilever remains optimistic, reaffirming its fourth-quarter volume growth guidance to match the third quarter's 1.7%.

Unilever expects its operating margin, excluding ice cream, to be at least 19.5% for the second half. The company aims for mid-single-digit underlying sales growth in the medium term. However, UBS points out that current market volume growth is closer to 1%, indicating potential challenges in achieving these targets.

Currently, UL's stock is priced at $64.19, showing a slight increase of 0.15, or 0.23%, from the previous session. The stock has fluctuated between $64.11 and $64.59 today. Over the past year, UL has seen a high of $73.94 and a low of $61.17, with a market capitalization of approximately $158.79 billion. Today's trading volume is 1,614,295 shares.