Nestlé: hit by broker downgrade

(CercleFinance.com) - Nestlé shares are the biggest faller in Zurich on Wednesday, hit by comments made by Jefferies, which downgraded its rating on the stock from "hold" to "underperform".


At 1.50 pm, the Swiss agrifood giant's stock was down almost 3% in heavy trading, significantly underperforming a pretty flat SMI index.

Jefferies, which reduced its target price for the share to 110 Swiss francs (from 118.5 Swiss francs previously), believes that the group could have difficulty reaching consensus forecasts for 2022.

In its study, the broker highlights a difficult comparison basis for two product categories that greatly benefited from previous lockdowns, i.e. coffee and animal food, in the current situation where things are gradually getting back to normal.


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