RSS Galvan Chartbreaker - UNILEVER E UNILEVER EMERGING MARKETS GROWTH PLAY (1,986p)
By Ed Woolfitt | 16 May 2011, 12:01 BST
Ed Woolfitt, Head of Trading at Galvan
At the end of April household products group Unilever said that it had continued to deliver growth in the first quarter of 2011 as turnover rose by 7% to €10.9bn (£9.7bn). Personal care sales rose by 4.3% to €3.5bn, and home care sales by 6% to €2bn. In foods, the savoury, dressings and spreads division saw a 2.1% rise in sales to €3.4bn, while ice cream and beverages sales were up by 4.7% to €1.9bn.
Unilever warrants a buy rating at Galvan Research off the back of the latest clearance for its Alberto Culver deal, and clear evidence that emerging markets growth is offsetting rising commodity costs. This has been enough to ensure growth across all divisions, and provided this continues, Unilever should continue to deliver.
The latest charting price action for Unilever shows a rising trend channel in place on the chart since the beginning of March. While the floor of the channel is held at 1,950p on a weekly close basis, the 2 month resistance line projection to 2,050p is the likely target.
| Dream Scenario | Unilever's latest Q1 update positions the consumer goods giant as an emerging markets growth play. | Stock | Unilever |
| Nightmare Scenario | Rising commodities costs and falling consumer demand in developed markets caps Unilever shares near current levels. | Epic Code | ULVR |
| Price Target | 2,050p | Year High | 2,000p |
| Stop Loss | 2,040p | Year Low | 1,688p |
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