Nestlé: Credit Suisse lifts rating - shares up
(CercleFinance.com) - The Nestlé stock was one of the few bright spots on Switzerland's SMI index on Friday, after Credit Suisse upgraded its rating on the share from "underperform" to "neutral".
Diving into Nestlé's coffee business - which accounts for about 25% of the group's profits - the broker said it expects a step-up in this category's organic sales growth this year, driven by a reversal of market share losses in capsule coffee (due to the rollout of the Starbucks brand) and the absence of price deflation in soluble coffee.
Credit Suisse has also raised its target price for the share from 93 Swiss francs to 103 Swiss francs
The stock was keeping its head above water after these comments - up 0,1% at 109.5 Swiss francs in late morning trading - one of the few risers on Zurich's SMI blue-chip index.
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