Nestlé: Oddo BHF raises target price

(CercleFinance.com) - Oddo BHF maintains its "outperform" rating on Nestlé shares, raising its target price for them from 118 Swiss francs to 123 Swiss francs.


The broker has reviewed the group's agreement with PAI Partners to create a joint venture in frozen pizzas in Europe.

Nestlé will retain a non-majority economic interest, with voting rights equivalent to those of PAI, which leads it to believe that the capital and voting rights will be shared between PAI Partners, Nestlé and the JV's management, the broker points out.

It adds that it is likely that the creation of this JV in Europe could be a forerunner to the creation of a larger JV that would encompass pizza in the US, and even all of the frozen food assets in the US.

However, the transaction would initially only involve the frozen pizza assets in Europe and not those in the US.


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