Magnum (MICC) shares rallied on Friday following reports that private equity giants Blackstone and CD&R are exploring a buyout bid for the company recently spun off from Unilever (ULVR.L.EB).
This upward momentum helped MICC break above its 100-day moving average (MA), indicating the longer-term trend is now shifting in favor of the bulls.
Despite recent gains, Magnum stock remains down about 17% versus its year-to-date high.
What a Take-Private Deal May Mean for Magnum Stock
The sudden arrival of blue-chip private equity suitors provides a bullish floor for MICC shares.
Buyout firms like Blackstone and CD&R are widely regarded as disciplined value investors. Their active monitoring of Magnum’s price, therefore, implies the business is fundamentally undervalued.
In order to secure shareholder approval for a potential take‑private deal, these PE firms will likely have to offer a significant premium — a key reason why Magnum ripped higher on May 15.
Longer-term, such a transaction will enable MICC to restructure away from public market scrutiny, optimizing its supply chain and resolving internal friction like the “Free Ben & Jerry’s” campaign led by co-founder Ben Cohen.
What Else Makes MICC Shares Worth Owning
Even without the buyout catalyst, Magnum shares are just as compelling as a long-term holding in 2026. In April, the ice cream firm said it generated a better-than-expected €1.77 billion in Q1 sales.
Still, MICC is going for just 1x sales at the time of writing — a valuation multiple that’s remarkably attractive for a profitable, cash-generating consumer packaged goods company.
With peak summer demand just around the corner, Magnum’s resilient volumes and strong pricing power present a rare, high-margin asset masquerading as a discounted value stock.
As Jefferies analysts led by David Hayes noted in their recent research note: “Execution improvements are evident – notably in Europe.”
What’s the Consensus Rating on Magnum Ice Cream
Despite aforementioned positives, some caution is still warranted in playing MICC stock at current levels, given Wall Street’s consensus rating on it remains a “Hold.”
According to Barchart, the mean target on Magnum Ice Cream Company sits at $16.77, which is roughly in line with the price at which it’s trading already.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
