Nestlé: Oddo BHF still says 'buy' after disposal
(CercleFinance.com) - Oddo BHF reaffirms its "buy" rating on the Nestlé share, along with its target price of 117 Swiss francs, the day after it reached a deal to sell Froneri, its ice cream business in the United States, in a transaction worth 4 billion dollars.
The transfer of US assets will enable Froneri to gain critical mass in an oligopolistic market, the analyst says, who, in the deal, sees a very reassuring message on the continued transformation of the Swiss agri-food group's portfolio.
The share price's recent weakness provides investors with a good entry opportunity on a defensive group whose transformation enables it to be more strategically focused on dynamic categories, while remaining very diversified in operational terms, the analyst 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.
The transfer of US assets will enable Froneri to gain critical mass in an oligopolistic market, the analyst says, who, in the deal, sees a very reassuring message on the continued transformation of the Swiss agri-food group's portfolio.
The share price's recent weakness provides investors with a good entry opportunity on a defensive group whose transformation enables it to be more strategically focused on dynamic categories, while remaining very diversified in operational terms, the analyst 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.