Nestlé: Deutsche Bank reduces target price

(CercleFinance.com) - Deutsche Bank announced on Tuesday that it had lowered its target price for Nestlé shares from 110 CHF to 106 CHF ahead of the Swiss food group's Q1 results, due out on 25 July.


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

While it is maintaining its estimate of an operating margin of 17.4%, the broker says that it has raised its target for real internal growth (RIG) from 1.2% to 1.3% for the current financial year as a whole.

However, it explains that it is now only expecting a price effect of 2.3% in 2024, compared with +2.8% previously.

Deutsche Bank says it expects Q2 organic growth of 3.5%, after +1.4% in Q1, including 1.2% real internal growth (RIG) and a 2.3% price effect.


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