Nestlé: Credit Suisse provides forecasts
(CercleFinance.com) - Credit Suisse points out that since the beginning of March, most emerging currencies have weakened significantly against the Swiss franc, particularly those of Brazil (10%), Mexico (13%) and Russia (16%).
At the same time, the Swiss franc has appreciated 4% against the US dollar.
In this context, Credit Suisse has reduced its 2021 EPS estimate for Nestlé by 4% to 4.87 Swiss francs.
Credit Suisse confirms its Neutral rating on the share, with a target price of 97 Swiss francs (against 103 Swiss francs).
"Given the stability of the portfolio of food & beverages categories in which it operates, and the strength of its balance sheet, Nestle is arguably the largest (by market capitalization) relative safe haven/bond proxy in Europe," it says.
"Notwithstanding an impact from coronavirus, we anticipate organic sales growth of 3.3% this year and a 50bp uplift in margin to 18.1%. This translates to 8% constant currency earnings growth," it adds.
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.
At the same time, the Swiss franc has appreciated 4% against the US dollar.
In this context, Credit Suisse has reduced its 2021 EPS estimate for Nestlé by 4% to 4.87 Swiss francs.
Credit Suisse confirms its Neutral rating on the share, with a target price of 97 Swiss francs (against 103 Swiss francs).
"Given the stability of the portfolio of food & beverages categories in which it operates, and the strength of its balance sheet, Nestle is arguably the largest (by market capitalization) relative safe haven/bond proxy in Europe," it says.
"Notwithstanding an impact from coronavirus, we anticipate organic sales growth of 3.3% this year and a 50bp uplift in margin to 18.1%. This translates to 8% constant currency earnings growth," it adds.
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.