TRADER TIPS: City insiders say buy consumer goods giant Unilever which is ‘undervalued’, but sell electronics firm Dialight
BUY THIS: Unilever
Berenberg analysts believe consumer goods giant Unilever is undervalued.
They have given the group a ‘buy’ rating and increased its target price from 4700p to 4800p.
They added: ‘We think that Unilever has taken the biggest steps among peers to increase its agility, reduce costs, embrace digital channels and future-proof its portfolio, which is not reflected in its valuation.’
Time to invest: Berenberg analysts believe consumer goods giant Unilever is undervalued
SELL THIS: Dialight
Brokers suggest the time is right to offload shares in electronics firm Dialight, which specialises in LED lighting for industrial buildings.
Berenberg has reiterated its ‘sell’ rating – which it first issued in September. Since then, Dialight’s shares have fallen 40per cent. They closed at 488p on Friday.
Ahead of Dialight’s first-half results on July 30, analysts said: ‘We think there is further downside.’