UBS upgrades HUL citing 'strong' outlook

Raises its target price to Rs 540 from Rs 500

UBS upgraded Hindustan Unilever to "buy" from "neutral" and raised its target price to Rs 540 from Rs 500, citing expectations for a "strong" business outlook and the prospect of rising volumes for its products.

"HUL's brand ladder pricing, category depth, and geographical breadth provide its business with levers to reaccelerate once macro headwinds are behind," UBS said in a note dated Wednesday.