Nestlé: Deutsche Bank lowers target price

(CercleFinance.com) - Deutsche Bank announced on Monday that it had lowered its price target for Nestlé from 95 CHF to 90 CHF, while maintaining its 'hold' recommendation on the stock.


In a note, the broker explains that it has made a number of reductions to its forecasts following the appointment of a new CEO, accompanied by comments suggesting the need for new investments, and recent economic indicators pointing to a slowdown in US growth.

The analyst explains that he does not expect the 2025 financial year to result in a drive to boost margins, which leads him - in view of the ongoing deceleration in growth - to reduce his EPS estimate for 2024 by 1.8% and by 5.9% for 2025.

Deutsche points out that its targets are now 3.7% and 8% below consensus.


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