Erste Group Cuts Unilever FY2027 EPS Forecast Slightly

Unilever PLC (NYSE:UL) is facing a modest reduction in long-term earnings expectations from Erste Group Bank. The bank’s analysts lowered their forecast for the company’s full-year 2027 earnings per share to $4.00, a slight dip from the previous estimate of $4.01. This adjustment places the bank’s view slightly above the current market consensus of $3.53 per share, reflecting a continued focus on the consumer goods giant’s profitability trajectory.

The revision comes in the wake of Unilever’s second-quarter results, where the company reported earnings of $0.59 per share, falling significantly short of the analyst consensus of $1.84. Revenue for the period also trailed expectations, coming in at $14.62 billion against a forecast of $14.80 billion. Despite these near-term headwinds, the broader analyst community maintains a mixed but cautious outlook, with a consensus rating of 'Hold' and a price target of $65.55 according to data cited by MarketBeat.

Quarterly Results Missed Market Expectations

Unilever’s most recent financial disclosure, released on July 28, highlighted a gap between actual performance and analyst projections. The $1.25 miss in earnings per share indicates challenges in margin management or expense control during the quarter. With revenue also below the projected $14.80 billion, the company demonstrated that demand for its portfolio of beauty, personal care, and home care products did not fully align with market assumptions.

Stock price movements reflect this uncertainty, with shares opening at $62.01 recently. The stock trades within a fifty-two-week range of $54.75 to $74.97, sitting below its fifty-day simple moving average of $63.05. This positioning suggests that investors are still digesting the impact of the recent earnings miss on the company’s medium-term valuation.

Analyst Ratings Remain Mixed

While Erste Group trimmed its 2027 outlook, other firms have made recent adjustments to their stances. Zacks Research upgraded its rating from 'strong sell' to 'hold' in late July, while Weiss Ratings moved from a 'sell' to a 'hold' rating. Conversely, Jefferies Financial Group reaffirmed an 'underperform' view, and TD Cowen maintained a 'buy' recommendation. The current distribution of ratings includes two Strong Buy, two Buy, six Hold, and two Sell recommendations.

Institutional Ownership Stays Modest

Institutional interest in Unilever remains relatively low, with hedge funds and institutional investors holding 9.67% of the total shares outstanding. Recent filings show small new positions acquired by firms such as Elyxium Wealth LLC, Financial Life Planners, and Palisade Asset Management, each with stakes valued between $25,000 and $29,000. These modest acquisitions suggest that while some investors are entering the position, large-scale institutional accumulation is not currently driving the stock’s dynamics.