Deutsche upgrades Hindustan Unilever to 'buy'

The prospect of price increases in personal products after muted price hikes recently is the reason

 

Hindustan Unilever Ltd gains nearly 5% after Deutsche Bank upgrades India's largest consumer goods maker to "buy" from "neutral" and raises its target price to Rs 530 from Rs 500.

Deutsche cites the prospect of price increases in personal products after muted price hikes recently, while adding that the negative impact from the recent royalty payment increases has already been factored in.

Deutsche's upgrade comes after UBS upgraded Hindustan Unilever to "buy" from "neutral" last week, citing expectations of a "strong" business outlook and the prospect of rising volumes for its products.