Broker snap: Competition to squeeze Unilever

15th Jan 2010 08:42

Nomura fears that food and household goods giant Unilever faces increased competition from the likes of Procter and Gamble in 2010 and downgrades its rating on the stock to 'reduce' from 'buy.''We recommend taking profits,' Nomura says of Unilever, whose brands include Hellmann's mayonnaise and Persil washing powder.The broker is bearish on the overall European food sector, seeing no return to the 'halcyon phase' of 2003 to 2007.'Although we see some names benefitting from the continuing M&A wave in 2010, we see risk of disappointment in terms of consumer trends and margin progression.'