CAL Brokers has initiated coverage of Unilever Ghana with a BY recommendation based on 12-month fair value price target of GHS21.43 per share, which reflects an upside potential of 26.8%.

“We initiate coverage of Unilever Ghana Limited with a BUY recommendation based on a price target of GHS 21.43, which is derived from a forward PB of 10.08x and PE of 27.30x. Our valuation indicates an expected capital appreciation of 26.8% and a dividend yield of 4.9%, putting the overall expected return of the stock at 31.7%. We recommend Unilever for both value and institutional investors searching for bargains on the market."

“Unilever is expected to benefit tremendously from the ongoing economic recovery as exchange rate stability and low inflation boosts the company's operational efficiencies and overall profitability. We are of the firm believe that the current market valuation of GHS 16.90 inappropriately prices in all anticipated gains expected from the favorable economic environment".