In its latest analysis of the European consumer staples sector, Barclays has preserved a neutral sector outlook but implemented selective rating and price target adjustments across several prominent companies. The broker’s focus remained primarily on individual stock performance rather than a revision of the overall sector stance, highlighting the mixed dynamics within food, household, and personal care product segments.
Among large-cap names, Barclays reiterated its "overweight" ratings on several key stocks. Danone was affirmed at "overweight" despite a slight reduction in its price target from €85 to €83, positioning the shares—which last closed at €67.4—for an anticipated upside of approximately 23.1%. Similarly, Unilever's "overweight" rating was maintained with an upward revision in its price target to 5,700p from 5,500p, reflecting a potential gain of 19.1% based on a last traded price of 4,785p.
Reckitt’s rating stayed consistent at "overweight" with a stable price target of 7,000p. Its closing price of 6,040p suggests an expected gain near 15.9%. Beiersdorf also retained its "overweight" designation with the price target held steady at €112; trading last at €98.6, the stock is seen to have a 13.6% ascent potential.
Upgrades were particularly noteworthy for L’Oréal and Haleon. Barclays advanced L’Oréal’s rating from "underweight" to "overweight," concurrently elevating its price target substantially from €325 to €435. With shares last closing at €385.4, this adjustment indicates an upside potential of roughly 12.9%. Haleon followed a similar trajectory, moving from "equal weight" to "overweight," with price guidance increased to 420p from 380p. The company’s shares, priced at 377.2p at close, reflect an implied upside near 11.3%.
Several other firms maintained "equal weight" ratings without major shifts in outlook. Nestlé’s rating stayed firm, although its price target was modestly lowered from CHF90 to CHF80. Price at close was CHF73, representing an expected gain of about 9.6%. In contrast, Henkel experienced a downgrade from "overweight" to "equal weight," with its target price adjusted downward from €80 to €76.2. Trading most recently at €71.5, the stock shows a comparatively smaller upside of 6.6%. Magnum Ice Cream Company kept "equal weight" status, but its price target rose to €14.7 from €13.7 against a closing price of €14.1, signaling a 4.5% potential rise.
On the downside, Lindt was downgraded from "overweight" to "underweight," with a significant price target reduction to CHF105,000 from CHF135,000. Given its last price of CHF113,600, this implies a downside risk of approximately 7.6%. Essity continued to bear an "underweight" rating alongside an unchanged target price of SEK 235, while its closing price of SEK 271.4 shows about a 13.4% downside potential.
Overall, Barclays' recent note underscores a stable sector stance tempered by selective stock-driven shifts, reflecting differentiated prospects across the European consumer staples landscape.