Nestlé: Oddo confirms buy rating
(CercleFinance.com) - Oddo confirms its buy rating on the Nestlé share, with a target price of 118 Swiss francs (8% upside) following the group's announcement of its takeover bid on Aimmune Therapeutics.
The analyst believes that the proposed price is necessarily high for a target that does not achieve any turnover. However, it has significant potential and above all Aimmune represents the third pillar of medical nutrition, i.e. the treatment of food allergies.
Oddo points out that the 34.5 dollar per share offer represents a 174% premium over Friday's closing price, which may seem significant.
There remains significant potential, given that 240 million people worldwide suffer from food allergies worldwide. Aimmune obtained FDA approval in January 2020 for its product Palforzia, which is currently the only peanut allergy treatment product. Some believe that Palforzia has the potential of reaching sales of 1 billion dollars in the next 3-4 years, Oddo 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.
The analyst believes that the proposed price is necessarily high for a target that does not achieve any turnover. However, it has significant potential and above all Aimmune represents the third pillar of medical nutrition, i.e. the treatment of food allergies.
Oddo points out that the 34.5 dollar per share offer represents a 174% premium over Friday's closing price, which may seem significant.
There remains significant potential, given that 240 million people worldwide suffer from food allergies worldwide. Aimmune obtained FDA approval in January 2020 for its product Palforzia, which is currently the only peanut allergy treatment product. Some believe that Palforzia has the potential of reaching sales of 1 billion dollars in the next 3-4 years, Oddo 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.