Unilever (NYSE:UL) inventory caught a downgrade from Bernstein on Tuesday due to a slew of considerations on fundamentals of the enterprise, a CEO transition, and slowing development for the enterprise.

A workforce of analysts led by Bruno Monteyne defined that Unilever is now costlier than a lot of its friends, a crimson flag given the continuing turnaround technique. Further, the expectation of a CEO transition in 2023 stays a serious unknown hanging over the inventory

“None of that makes much sense from a valuation point of view, in our view, but it reflects the Peltz factor,” Monteyne defined. “These hope factors don’t always last long.”

As such, the workforce minimize their ranking on the inventory to Underperform from a previous Market Perform ranking, trimming their goal on the British client staples big to £35.

“We still worry about the culture at Unilever and whether the sense of urgency for change is strong enough. The Capital Markets Day was very valuable in understanding each business unit, but we were struck about how positive everything was in their outlook,” Monterey wrote. “Despite historically poor performance across most divisions, all divisional presentations focused on all the high growth brands and high growth opportunities.”

He opined that the corporate can be higher off providing a mea culpa and rationalization on previous errors and classes realized. Without this side, Monteye believes the turnaround technique lacks a level of credibility. He additionally warned that turnarounds a hardly ever linear, even in the very best of circumstances.

US-listed shares of Unilever marked a modest decline shortly earlier than Tuesday’s market shut.

Read extra on activist investor Nelson Peltz’s enter in Unilever’s CEO search.