Nestlé: Berenberg keeps 'buy' rating on 'balanced' growth

(CercleFinance.com) - Berenberg on Tuesday maintained its "buy" rating on Nestlé, with a target price of 122 Swiss francs, saying that the Swiss group's "balanced" growth is set to continue in 2020.


In a note to clients, the German broker said Nestlé's growth remains well balanced between organic growth and margins, while its cash generation and return on invested capital (ROIC) are improving.

Berenberg believes that this balanced growth delivery, combined with material capital deployment and heightened M&A, can support a re-rating from the share's current P/E of 23x.

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