Nestlé: overvalued growth, Credit Suisse says
(CercleFinance.com) - Credit Suisse maintains its sell rating ("underperformance") on the Swiss food and beverage giant Nestlé, which after its 2018 results is trading at an historic high in Zurich, at around 89 Swiss francs.
Analysts believe that the stock is overvalued relative to the group's growth. Even so, the broker has raised its target price for the share from 70 Swiss francs to 79 Swiss francs.
At half-mast for a number of years, Nestlé's organic growth has indeed accelerated in Q4 in particular thanks to the US, but it only reached 3% in 2018. Yet, between 2005 and 2012, this growth was around 6.5% on average.
However, growth in Western Europe is at half mast, and the group's partnership with Starbucks has yet to prove itself.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Analysts believe that the stock is overvalued relative to the group's growth. Even so, the broker has raised its target price for the share from 70 Swiss francs to 79 Swiss francs.
At half-mast for a number of years, Nestlé's organic growth has indeed accelerated in Q4 in particular thanks to the US, but it only reached 3% in 2018. Yet, between 2005 and 2012, this growth was around 6.5% on average.
However, growth in Western Europe is at half mast, and the group's partnership with Starbucks has yet to prove itself.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.