Barclays Signals Positive Strategic Outlook for Unilever Under New CEO
Unilever’s strategic direction under recently appointed CEO Hein Schumacher appears to be gaining favor among investors, with Barclays analysts issuing a bullish note highlighting a “credible path” to improved performance. The consumer goods giant, known for brands such as Dove, Hellmann’s, and Ben & Jerry’s, is undergoing a reset aimed at enhancing competitiveness and driving shareholder value.
Barclays maintained an “Overweight” rating on Unilever shares and assigned a new price target of £46.00, up from the previous £40.00. Analysts praised Schumacher’s laser focus on operational basics and resource allocation, positioning the company for margin improvement and accelerated growth over the medium term.
The bank views Unilever’s continued simplification of its portfolio and renewed discipline in marketing and innovation as key to re-energizing top-line performance. “The strategic review of the Ice Cream unit could further unlock value,” Barclays noted, referencing Unilever’s consideration of options for its slow-growing but globally recognized ice cream business.
Unilever has struggled in recent years with sluggish volume growth and challenged consumer sentiment across core markets. However, Barclays believes that Schumacher’s emphasis on core category strength, investment in brand equity, and cost efficiency can reverse these trends. The analyst noted Unilever’s early steps toward optimized capital allocation, including a stronger innovation pipeline, are promising signs for future momentum.
Particularly relevant to FMCG stakeholders, Barclays pointed to the company’s potential to deliver improved returns through a combination of pricing power, mix improvements, and better execution across its multi-category portfolio. With more consistent leadership and a narrowed strategic focus, Unilever may unlock stronger shareholder returns and reassert its position among top-tier global FMCG players.
The favorable analyst outlook suggests increasing confidence from the market in Unilever’s roadmap, marking Schumacher’s leadership as a potential catalyst in shifting the narrative for one of the sector’s most storied firms.