London, Jan 9, 2026, 10:48 GMT — Regular session
- Unilever shares rose about 1.2% in early London trade after a volatile week
- Jefferies stuck with an “underperform” view, flagging margin and pricing pressure risks
- The group’s India arm said it will appeal a 15.6 billion-rupee tax demand
Unilever shares rose 1.2% to 4,720.5 pence by 1033 GMT, bouncing from an early low of 4,678 pence as investors weighed fresh broker caution against a steady stream of company updates. The stock has traded between 4,123 and 4,930 pence over the past 52 weeks. 1
Why it matters now: Unilever heads into a key reporting stretch with the market fixated on whether growth in 2026 comes from higher volumes, not just price rises. Broker notes and small regulatory filings have started to move the shares again, even when the underlying news is not decisive.
Jefferies reiterated an “underperform” rating and lifted its target price to 4,100 pence, updating its estimates after Unilever’s ice cream spin-off. Analyst David Hayes said he still saw “downside risk” to valuation, pointing to pricing and operating margin pressures; Jefferies expects “volume-mix” (a measure of how many units sell and what mix of products customers buy) to improve by about 2% in the fourth quarter and like-for-like sales growth (which strips out currency swings and acquisitions) to land between 4% and 6% for the year. 2
In India, Hindustan Unilever said it received a tax demand order for 15.6 billion rupees ($173.6 million) and plans to appeal, adding it expects no material impact on its financials or operations. The update drew attention because India remains a key market for global consumer groups, and tax disputes can linger. 3
Separately, a Unilever filing corrected an earlier “total voting rights” disclosure, a share-count figure investors use to calculate when they must notify regulators about changes in their stakes. The company said its issued share capital stood at 2,181,005,247 ordinary shares and that 2,180,690,335 shares carried exercisable voting rights at year-end after correcting an error in a prior announcement. 4
Analyst sentiment stayed mixed. BNP Paribas Exane downgraded Unilever’s U.S.-listed shares to “neutral” from “outperform” and set a $71 price target, according to a MarketBeat report summarising the note. 5
But the upside case still hinges on execution. A tougher pricing backdrop, any wobble in operating margins, or a slower pace of volume recovery could pull the shares back toward this week’s lows, especially if investors decide the stock’s valuation leaves less room for disappointment.
Next up, investors will focus on Unilever’s fourth-quarter and full-year 2025 results on Feb. 12, followed by its appearance at the CAGNY conference on Feb. 17, for signals on 2026 growth, margins and how demand is holding up across categories. 6
