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Stock impact report

This name is 'global leader' while its stock trades at a 35-40% discount: analyst [Yahoo! Finance]

Unilever PLC American Depositary Shares (each representing One Ordinary Share) (UL) 
US:NYSE Investor Relations: unilever.com/investor-relations
Company Research Source: Yahoo! Finance
The group, now the world's largest standalone ice cream business, saw early trading pressured as index-linked investors exited following the long-awaited separation from Unilever. Kepler Cheuvreux analyst Karel Zoete said Magnum is the "global leader" in the ice cream category, yet its shares are trading at a steep discount to peers. On Friday, Zoete initiated coverage on Magnum shares with a Buy rating and a target price (TP) of 16.30 euros, implying around 19% upside from current levels. The analyst believes the company's valuation fails to reflect its market position, margin recovery potential and improving operational performance. He argues that at around 12x 2026E earnings and 11x EBIT, the stock is “too cheap to ignore, and that the period in which the shareholder base is being adjusted offers a good opportunity to build a position.” “At our 12-month TP of EUR16.3, the shares would trade at a c. 25% discount to peers, versus 35-40% currently,” Zoete added. Kepler sees Show less Read more
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