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Unilever N.V.

Unilever N.V. Tel. +44 (0)20 7232 3090 Fax +44 (0)20 7232 3099 LSE: IIR Traded

10 July 2008

Update Report – 1Q 08 Results

Increase in commodity prices is expected to maintain our subdued outlook






Target Price:


Current Price:


We reiterate the common stock a HOLD with a target price of €17.08.




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Current Price:


The NYSE Stock is expected to depreciate by approximately 21% over the next 6-24 months, approximately 12 percentage points downside is attributable purely to the anticipated depreciation of the Euro against the US dollar over the same period. We continue to value this stock over a 6-24 month investment horizon as we do not anticipate a significant currency impact in the medium term.

We reiterate the NYSE stock a SELL with a 6-24 month target price of US$23.06.

Supervisor: Jinesh Joshi Analyst: Swati Gupta Editor: Adil Bahar, PhD Global Research Director:

Satish Betadpur, CFA

Next news due:

2Q 08, 31 July 2008

Investment horizon – short term actionable trading strategies

This report addresses the needs of strategic investors with a long term investment horizon of 6-24 months. If this report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for readers with a shorter trading horizon. These are available on-line only at

Report summary

Although Unilever recorded healthy revenue growth from Asia Africa, this was significantly offset by poor performance from the Americas and Europe, leading to a marginal 0.5% y-o-y growth in revenues in 1Q 08. Management expects the implementation of its single SAP system program and other cost saving initiatives to offset increase in costs. However, considering the challenging market conditions, rising commodity costs and fuel prices; flat volumes and price growth in developed economies, we believe Unilever’s margins will be negatively impacted, going forward. Therefore, we hold a subdued outlook for the company.

Currency impact for US investors

The impact by itself of the anticipated currency movements on the NYSE stock (now US$29.18), without considering changes in the share price, is broadly negative and is expected to be:

Over 6 months: US$31.50

Over 12 months: US$28.13

Over 24 months: US$25.31