JPMorgan Chase Upgraded Unilever’s Rating to ‘Overweight’



Unilever’s price movement

Unilever N.V. (UN) has a market cap of $125.2 billion. After JPMorgan Chase upgraded the stock to “overweight,” it rose by 2.2% to close at $41.50 per share as of January 12, 2016. The price movement on a weekly, monthly, and YTD (year-to-date) basis is -1.5%, -3.5%, and -4.2%, respectively.

Technically, the stock broke the support. It’s trading below all of the moving day averages. Currently, Unilever is trading 2.7% below its 20-day moving average, 4.7% below its 50-day moving average, and 2.5% below its 200-day moving average.

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The PowerShares International Dividend Achievers Portfolio (PID) invests 2.0% of its holdings in Unilever. PID tracks a dividend-yield-weighted index of foreign ADRs (American depositary receipts), GDRs (global depositary receipts), and non-US stocks listed in the US or London. The index screens on five-year dividend growth. PID’s YTD price movement is -9.5% as of January 11, 2016.

Unilever’s competitors and their market caps are:

  • Colgate-Palmolive (CL) – $56.9 billion
  • General Mills (GIS) – $33.5 billion
  • Estee Lauder Companies (EL) – $31.1 billion

JPMorgan Chase upgraded Unilever

JPMorgan Chase upgraded Unilever’s rating from “underweight” to “overweight.”

Unilever’s performance in fiscal 3Q15

Unilever reported fiscal 3Q15 turnover of 13,396.0 million euros—a rise of 9.4% compared to the turnover of 12,244.0 million euros in fiscal 3Q14. The turnover of the personal care, foods, refreshment, and home care segments rose by 12.9%, 4.8%, 10.2%, and 7.7%, respectively, in fiscal 3Q15—compared to the turnover in fiscal 3Q14.

The company declared a quarterly interim dividend in fiscal 3Q15 at the following rates:

  • a dividend of 0.30 euros per Unilever N.V. ordinary share
  • a dividend of 0.23 pounds per Unilever PLC ordinary share
  • a dividend of $0.34 per Unilever New York share
  • a dividend of $0.34 per Unilever ADR

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