London, Jan 8, 2026, 09:02 GMT — Regular session
- Unilever shares dip 0.7% after touching a 52-week low in early London trade
- Jefferies keeps an “underperform” view, flags valuation and margin worries
- Investors look to Feb. 12 results for updated growth and margin signals
Unilever PLC (ULVR.L) shares fell 0.7% to 4,599.6 pence by 0902 GMT, after touching 4,584.5 pence, the bottom of their 52-week range. The FTSE 100 was down about 0.2% and peer Reckitt Benckiser was up about 0.8%. 1
The slide follows a 2.4% drop on Wednesday, when Unilever closed at £46.31 and lagged the wider market. The stock is about 16% below its Dec. 19 high, with trading volume running below recent averages, MarketWatch data showed. 2
Broker notes were adding to the caution. Jefferies analyst David Hayes reiterated an “underperform” rating and raised his target price to 4,100p, pointing to what he called “downside risk to both the valuation” as pricing and margin pressures weigh. Jefferies also said it expects full-year like-for-like sales growth of about 4% to 6% and flagged the risk that a slower U.S. contribution could sour sentiment. 3
Separately, Unilever Indonesia agreed to sell its SariWangi tea business to Savoria Kreasi Rasa, an affiliate of the Djarum Group, in a deal valued around 1.5 trillion rupiah ($89 million). Benjie Yap, president director of Unilever Indonesia, said the deal would sharpen the company’s focus on “priority, higher growth segments”, with completion targeted by March 2, subject to conditions. The tea unit contributed about 2.7% of Unilever Indonesia’s revenue and 3.1% of net profit, the company said. 4
For the London parent, the Indonesia transaction is small, but it lines up with a wider portfolio reset after Unilever completed the demerger of its ice cream business in December. Chief executive Fernando Fernandez has said the group expects operating margins after the separation to rise to at least 19.5% in the second half. 5
The backdrop has not helped. European shares edged lower on Thursday, with the STOXX 600 down 0.2% by 0813 GMT as investors weighed earnings updates and geopolitical risks, Reuters reported. 6
But the bigger question for investors remains execution, not the tea sale. Small disposals can get lost in the noise if pricing power softens, costs rise, or shoppers trade down across key categories.
