Unilever (UL) Rated Buy by BofA on Valuation Gap

Unilever PLC (NYSE:UL) ranks among the best low-risk investments in May 2026. On April 14, BofA Securities began coverage of Unilever PLC (NYSE:UL), with a Buy rating and a $72 price target for the company’s shares. Analyst Nicolas Ceron noted that UL’s stock had plummeted by about 20% since the conflict in Iran began. Despite an identical earnings per share CAGR, the stock is trading at a 2026 expected price-to-earnings ratio of 15.4x, reflecting an 8% discount relative to European Food HPC.

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The firm emphasized the company’s arrangement with McCormick to separate its Foods division to become a pure-play HPC (Home & Personal Care) company, as well as its strong, “unrivaled” position within the Indian market, which is projected to drive 25% of its total performance. Additionally, BofA pointed out that the 20% valuation gap to U.S. rivals might be closed if activist investor Trian Partners pursues a U.S. listing, as it did with Ferguson.

Unilever PLC is a British multinational fast-moving consumer goods corporation formed through the combination of British soap manufacturer Lever Brothers and Dutch margarine producer Margarine Unie.

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