Goldman Sachs Downgrades Magnum Ice Cream Company (MICC) to Sell From Neutral – Here’s Why

Core Viewpoint - Magnum Ice Cream Company N.V. (NYSE:MICC) is considered one of the best undervalued defensive stocks for 2026, despite a recent downgrade by Goldman Sachs from Neutral to Sell, with a price target reduction from EUR 13.70 to EUR 13 [1][3]. Financial Performance - For the full year 2025, Magnum Ice Cream reported revenue of €7.9 billion, maintaining the same level as FY 2024, with an organic sales growth (OSG) of 4.2% year-on-year, volume growth of 1.5%, and price growth of 2.6% [3]. - The operating profit for the company was €599 million, which included a planned net increase of €118 million in separation and restructuring costs compared to 2024, as well as the impact of foreign exchange translation [3]. - The adjusted EBITDA margin was reported at 15.9%, affected by foreign exchange translation effects and previously allocated depreciation costs [4]. Business Operations - Magnum Ice Cream manufactures and sells ice cream brands and products designed for both at-home and away-from-home consumption [4]. - The company's operations are segmented geographically into the Americas, Asia, and the Middle East, Turkey, South Asia, and Africa (METSA) [4].