Written by Sinad Karahimetovic
Unilever (NYSE ๐ announced earlier today that CEO Alan Jope has told the Board of Directors of his plans to retire from the company at the end of 2023.
The company said in a statement that the company has begun an official search for a successor and will consider internal and external candidates.
A Morgan Stanley analyst expects to hear more from the company during its third-quarter earnings call on October 27. He said investors are likely to focus on whether the leadership change will also lead to a change in strategy from a new management team.
For the Jefferies analyst, the change of CEO is a positive development.
“The lengthy lead-time for his departure should facilitate the continuation of what is a major organizational change,” he wrote in a note to a client.
On a separate note, an analyst at Berenberg upgraded the stock to Buy from Hold as the company “has been repositioned for faster growth.”
โHigher category growth and better execution should enable Unilever to achieve organic growth at the higher end of its mid-range guidance of 3-5%. The new business unit structure should enable faster growth, unlock cost efficiencies and increase portfolio management flexibility,โ said the analyst at note.
The new target price is 48 pounds per share, up from 40 pounds.
