London, May 18, 2026, 09:02 BST
Unilever PLC shares ticked up 0.12% to 4,212 pence early Monday in London, with trading volume at 440,372 shares. The move put Unilever ahead of the FTSE 100, which slipped 0.04% to 10,190.81 according to Reuters’ LSEG-delayed data. Buyers looked beyond a new bearish note from Jefferies to renewed takeover talk around Unilever’s old Magnum ice-cream division.
Unilever is getting fresh attention as it shifts away from its old image as a sluggish consumer goods stock. The London-listed firm has been focusing more on personal care, beauty and household brand lines. It still holds a 19.9% stake in Magnum and wants to sell that in the next five years.
Blackstone and Clayton, Dubilier & Rice are looking into possible offers for Magnum, owner of Ben & Jerry’s and Cornetto, Reuters said Friday, citing sources. The firms are watching Magnum’s share price and waiting for summer sales data before making a move, according to people familiar with the talks.
Unilever’s read-through was messy. Magnum shares surged almost 16% on the Reuters story, but the stock had been near 13 euros before the news. That’s still below this year’s 16.5 euro peak and close to where it started trading after its December debut, which set the company’s value at around 7.8 billion euros.
Jefferies analyst David Hayes took a cooler view on Unilever, lowering his price target to 37 pounds from 43 pounds and sticking to an Underperform call, according to an ABM FN-Dow Jones report on ING Markets. Hayes pointed to concerns over volume growth in 2026 and 2027, weaker U.S. sales trends and a revised growth outlook of around 3.5%, down from 4%.
Hayes thinks Unilever is leaning into a strategy tied to activist Nelson Peltz – lifting targets, making cuts, selling or buying businesses to drive growth, according to the report. Hayes said he won’t back off his bearish view until Unilever’s acquisitions work out and investors are less concerned. He flagged the planned sale of the food arm for the first half of 2027 as an area to watch.
Unilever hasn’t released a new trading update as of Monday. The latest report was back on April 30, when underlying sales growth came in at 3.8%. That number removes currency changes and portfolio changes. It beat the company-compiled consensus of 3.6%. Unilever also reaffirmed its 2026 sales and margin goals.
Cost is the sticking point. Unilever is looking at full-year cost inflation of around 750 million to 900 million euros, covering logistics and factories. Finance chief Srinivas Phatak said to expect “frequent price increases but in small doses.” Reuters
Investors are left with a tight choice—grow sales by pushing more units or lift prices, but risk losing buyers to rivals. Chris Beckett, consumer staples analyst at Quilter Cheviot, said Unilever is limited in developed Europe: “There are limits to what they can do – it’s not easy to take pricing.” Reuters
Competitive pressure is real. Reuters reported Nestle and Procter & Gamble have warned on higher costs linked to the Iran war. In ice cream, Magnum claims about 21% of the $87 billion global market, with Froneri at 11%. Froneri is backed by PAI Partners and Nestle.
Risks remain. JPMorgan analysts point to tax constraints from Magnum’s tax-free demerger, saying that makes a takeover unlikely. Buyout firms are still holding back for summer sales. If costs remain elevated or U.S. demand drops, Unilever shares could move lower toward the Jefferies downside target and not see any lift from Magnum takeover talk.
Unilever shares are still far off their one-year high of 5,542.11 pence, according to MarketScreener, with Monday trading showing little sign of buyers jumping on the split-up chatter. Each fresh headline on disposals faces the ongoing issue of whether people are paying up for Dove, Vaseline or the company’s other household brands.
