Nestlé: Deutsche Bank reduces its target price

(CercleFinance.com) - Deutsche Bank announced on Tuesday that it had lowered its target price for Nestlé shares from CHF 110 to CHF 106, ahead of the publication of the Swiss food group's first-quarter results, scheduled for July 25.


In a research note, the analyst - who maintains a buy recommendation on the stock - says that it has made some changes to its forecasts, now expecting organic growth of only 3.6% this year, compared with 4% previously.

While it maintains its estimate of an operating margin of 17.4%, the intermediary indicates that it has revised upwards its target for real internal growth (RIG) from 1.2% to 1.3% for the current financial year as a whole.

On the other hand, it explains that it now expects a price effect of only 2.3% in 2024, compared with +2.8% previously.

For the second quarter, Deutsche Bank expects organic growth of 3.5%, after +1.4% in the first quarter, including 1.2% real internal growth (RIG) and 2.3% price effect.

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