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Morgan Stanley Resumes Coverage of Unilever (UL) with an Overweight View

Unilever PLC (NYSE:UL) is included among the 15 Global Dividend Stocks to Diversify Your Portfolio.

On December 15, Morgan Stanley analyst Sarah Simon resumed coverage of Unilever PLC (NYSE:UL) with an Overweight rating and a $60.10 price target. The firm says the company is now levered to “structurally faster growing segments” like beauty, wellness, and personal care. It sees a cleaner, more appealing setup for the stock heading into 2026.

Unilever PLC (NYSE:UL) is putting real money behind that shift. CEO Fernando Fernandez said on December 9 that the company plans to spend about €1.5 billion ($1.74 billion) a year on mergers and acquisitions, with a strong focus on the US market. That signals intent and also reflects where Unilever believes long-term growth is coming from.

The portfolio is already changing. On December 8, Unilever PLC (NYSE:UL) completed the demerger of its ice cream business, now listed in Amsterdam as The Magnum Ice Cream Company. Speaking at a JPMorgan event, Fernandez said Unilever’s second-half operating margin after the split should be at least 19.5%. That compares with 18.5% when ice cream was still included.

Unilever kept a 19.9% stake in Magnum, which began trading with a market value below analyst expectations of roughly $9.1 billion. The debut was weighed down by index funds exiting after the spinoff. Investors received one Magnum share for every five Unilever shares they owned. Management had flagged this risk earlier, noting the stock would not be immediately eligible for major indices such as the FTSE, which added pressure in early trading.

Unilever PLC (NYSE:UL) is a British multinational consumer packaged goods company headquartered in London, England.

While we acknowledge the potential of UL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UL and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 13 Highest Paying Monthly Dividend Stocks to Buy and 15 Dividend Stocks With Low Payout Ratios and Strong Upside

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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