RBC Capital upgrades Unilever, hikes price target

RBC Capital Markets upgraded consumer goods giant Unilever to ‘sector perform’ from ‘underperform’ on Tuesday, hiking the price target to 3,600p from 3,400p.

"Good managers require a combination of self-confidence, insecurity, humility and luck," RBC said.

"Unilever has got the balance wrong, but there are signs that the stars are starting to align. What happens next is opaque, but the combination of share price underperformance, a chastened board/leadership team focusing on running what it has - rather than bemoaning what it doesn’t - and some interesting developments (Trian, the reorganisation) prompt us to upgrade."

It was reported in January that activist investor Trian had built up a stake in Unilever. The move was first reported by the Financial Times, which said the stake size was unknown.