Unilever shares on course to exceed Barclays target price
Unilever is on course to exceed Barclays target price of £43.70 per share, with the stock capable of pushing even higher in 2020 after EU leaders agree new budget and sign-off on €750 billion Covid-19 recovery plan.
Unilever is on course to exceed Barclays target price of £43.70 per share, with the stock capable of pushing even higher in 2020 after EU leaders agree to new budget and sign-off on €750 billion Covid-19 recovery plan.
Investors are hoping that the British-Dutch consumer goods company will see its shares push on to hit Jefferies target price of £48.30 and Goldman Sachs forecast of £49 per share by the end of the year – representing a potential upside for the stock of between 10.5% - 12.1%.
Unilever is trading at £43.69 at the time of publication, with the stock up marginally on a year-to-date basis, but still outperforming the broader market with the FTSE 100 down 17% due to the economic impact of Covid-19.
EU leaders agree landmark €750 billion Covid-19 recovery plan
On Tuesday, after five days of talks, EU leaders have finally reached an agreement on a €750 billion coronavirus pandemic recovery fund aimed at supporting European businesses and national economies still reeling from the economic impact of the viral outbreak.
The news helped strengthen the euro against the dollar ($1.1477), with the French president Emmanuel Macron hailing it as a ‘historic day for Europe’.
European stocks rallied following the news, with the Euro Stoxx 50, German DAX and French CAC 40 all pushing higher on Tuesday and likely to edge higher over the course of this week as investors respond to the stimulus package.
DAX surges higher overnight amid EU stimulus deal
An apparent breakthrough on the EU stimulus package has helped drive the DAX into a fresh five-month high, according to Josh Mahony, senior market analyst at IG.
‘With the index having broken through the key 12,938 resistance level last week, there is a good chance we will see further gains as long as the EU package doesn’t falter,’ he said.
‘The four-hour chart highlights this recent leg higher, with a bullish outlook in play unless we see a break back below the 12,807 level, he added.
EUR/USD continues its grind higher
EUR/USD has been on the rise over the course of July thus far, with the pair hitting a tentative four-month high this morning.
‘While that failed to hold, the intraday uptrend remains intact unless we see a break below the $1.137 swing low from last Thursday,’ Mahony added. ‘Until then, further upside looks likely before long.’
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