Morgan Stanley Resumes Coverage of Unilever (UL) with an Overweight View

Unilever PLC (NYSE:UL) is included among the 15 Global Dividend Stocks to Diversify Your Portfolio.

On December 15, Morgan Stanley analyst Sarah Simon resumed coverage of Unilever PLC (NYSE:UL) with an Overweight rating and a $60.10 price target. The firm says the company is now levered to “structurally faster growing segments” like beauty, wellness, and personal care. It sees a cleaner, more appealing setup for the stock heading into 2026.

Unilever PLC (NYSE:UL) is putting real money behind that shift. CEO Fernando Fernandez said on December 9 that the company plans to spend about €1.5 billion ($1.74 billion) a year on mergers and acquisitions, with a strong focus on the US market. That signals intent and also reflects where Unilever believes long-term growth is coming from.

The portfolio is already changing. On December 8, Unilever PLC (NYSE:UL) completed the demerger of its ice cream business, now listed in Amsterdam as The Magnum Ice Cream Company. Speaking at a JPMorgan event, Fernandez said Unilever’s second-half operating margin after the split should be at least 19.5%. That compares with 18.5% when ice cream was still included.

Unilever kept a 19.9% stake in Magnum, which began trading with a market value below analyst expectations of roughly $9.1 billion. The debut was weighed down by index funds exiting after the spinoff. Investors received one Magnum share for every five Unilever shares they owned. Management had flagged this risk earlier, noting the stock would not be immediately eligible for major indices such as the FTSE, which added pressure in early trading.

Unilever PLC (NYSE:UL) is a British multinational consumer packaged goods company headquartered in London, England.

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