Nestlé: two brokers' analyses after new CEO

(CercleFinance.com) - On Friday, Barclays reaffirmed its overweight recommendation on Nestlé shares, with a target price of 110 CHF, following the announcement of Mark Schneider's departure, which it described as sudden, but not too surprising given recent events.


Commenting on this 'tectonic shift' at the head of the Swiss food group, the broker pointed out that Mark Schneider's successor, Laurent Friexe, is a 38-year Nestlé veteran who knows the business well.

We think this is a step in the right direction and that Nestlé still has an enviable portfolio, but it will raise questions about the finances and the right long-term algo, Barclays continues.

On Friday, Oddo BHF also confirmed its outperform rating on Nestlé, with an unchanged target price of 113 CHF.

The broker also refers to the appointment of Laurent Freixe as the new CEO from 1 September, succeeding Mark Schneider, but also notes that nothing is said about the current forecast of organic growth of at least 3%.


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