Investec has reiterated its 'buy' rating and 2,800p target price for consumer goods giant Unilever after its fourth-quarter results came in ahead of forecasts.

"The Q4 & FY12 numbers have beaten consensus expectations on the key metrics of organic growth and core margins (core earnings per share were in line)," said analyst Martin Deboo.

"This caps a strong year for ULVR and we see the trends as supportive of our 'buy' case," he said.

Fourth-quarter organic sales grew by 7.8%, the top end of the range and ahead of the consensus growth estimate of 6.3%. Investec was expecting a softer increase of 5.7%.

However, Deboo did highlight that Unilever's 2013 guidance would be "closely scrutinised".

"FY12 has been a strong year, but ULVR's rating doesn't allow any room for slips. We think the FY13 margin commentary around input costs, restructuring costs and benefits and A&P investment will be particularly closely scrutinised."

Nomura also highlighted caution in regards to 2013 as it kept its 'reduce' recommendation for the stock.

"The stock is likely to be a little better today vs peers, but the key now is how sales growth into FY 2013 holds up as pricing becomes less reliable and volume drivers the last two years lap."

The broker said that the shares trade at 18.3 times 2013 earnings, a premium of over 25% to its preferred name in the sector, Danone.

Shares were up 3.02% at 2,525.04p.

BC

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