UBS upgraded Hindustan Unilever(HLL.NS) to "buy" from "neutral" and raised its target price to 540 rupees from 500 rupees, citing expectations for a "strong" business outlook and the prospect of rising volumes for its products.

"HUL's brand ladder pricing, category depth, and geographical breadth provide its business with levers to reaccelerate once macro headwinds are behind," UBS said in a note dated Wednesday.