Unilever was downgraded by Kepler Cheuvreux from Buy to Hold, citing insufficient near-term upside following a strong stock rally. The brokerage raised its target price to 5,900p from 5,800p, acknowledging the shares now trade at a 10% premium to long-term EV/EBITDA multiples and a 19x P/E, above the 20x P/E implied by the new target.

Analyst Karel Zoete emphasized the risk-reward balance is better elsewhere in European FMCG, despite Unilever's improved position and AI sector tailwinds. The downgrade follows Unilever's slightly beat results and 22% post-Magnum spin-off return, but Zoete sees no catalyst for earnings upgrades in the near term.