Nestlé: Oddo raises target price
(CercleFinance.com) - Oddo has confirmed its buy rating on the Nestlé stock and has raised its corresponding target price to 100 Swiss francs (upside of about 11%) after the group announced its FY results.
Raising its TP to 100 Swiss francs follows quite a simple logic; it expects that at the end of 2019, the share will be trading at a 2020e P/E of 21x, in line with the European HPC food beverage, the broker explains.
Oddo says that with organic growth of 3.0% over 2018, EPS growth works out at +13.1%, i.e. nearly 4% above expectations.
The run-off effect should continue, with EPS growth expected at +8.6% and +11.4% over 2019 and 2020 respectively, according to Oddo's estimates, which suggests that the consensus will continue to increase - up by almost +4% in the next few days, it adds.
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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.
Raising its TP to 100 Swiss francs follows quite a simple logic; it expects that at the end of 2019, the share will be trading at a 2020e P/E of 21x, in line with the European HPC food beverage, the broker explains.
Oddo says that with organic growth of 3.0% over 2018, EPS growth works out at +13.1%, i.e. nearly 4% above expectations.
The run-off effect should continue, with EPS growth expected at +8.6% and +11.4% over 2019 and 2020 respectively, according to Oddo's estimates, which suggests that the consensus will continue to increase - up by almost +4% in the next few days, it adds.
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.