Nestlé: Oddo still a buyer following Zenpep takeover
(CercleFinance.com) - Oddo BHF maintains its "buy" rating on the Nestlé share, along with its target price of 117 Swiss francs, with the broker saying, the day after the agri-food giant's agreement to buy Zenpep from Allergan, that developments in its portfolio remain coherent.
The broker says that the acquisition of Zenpep for nearly one billion dollars, could, in its opinion, upset those who see it as inconsistent with management's expressed intentions not to leave the agri-food sector. Such a reaction is understandable, Oddo admits.
However, the analyst considers that Nestlé's territory is food and not the channel of prescription drugs or consumption, and that as such, Zenpep clearly reinforces the strategic territory that the group has assigned itself and on which it wants to focus.
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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.
The broker says that the acquisition of Zenpep for nearly one billion dollars, could, in its opinion, upset those who see it as inconsistent with management's expressed intentions not to leave the agri-food sector. Such a reaction is understandable, Oddo admits.
However, the analyst considers that Nestlé's territory is food and not the channel of prescription drugs or consumption, and that as such, Zenpep clearly reinforces the strategic territory that the group has assigned itself and on which it wants to focus.
Copyright (c) 2020 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.