Nestlé: Jefferies upgrades stock
(CercleFinance.com) - Jefferies has upgraded its rating on Nestlé shares from 'Underperform' to 'Hold', with a TP nudged up from 86 CHF to 87 CHF, following the Swiss food group's interim publication last week.
The broker now sees only limited downside potential in the stock, after a movement of -10% (vs. +7% for the SXXP), a devaluation of 19 to 17 times and a reduction of around 5% in the EPS consensus for 2024.
Nestlé is caught up in a constantly changing environment, but 50% of the portfolio is structurally well placed and can generate sales growth of around 4%, the broker says, which considers the 4%-6% target as over-ambitious.
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The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
The broker now sees only limited downside potential in the stock, after a movement of -10% (vs. +7% for the SXXP), a devaluation of 19 to 17 times and a reduction of around 5% in the EPS consensus for 2024.
Nestlé is caught up in a constantly changing environment, but 50% of the portfolio is structurally well placed and can generate sales growth of around 4%, the broker says, which considers the 4%-6% target as over-ambitious.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.