Nestlé: Oddo still a buyer, maintains target price
(CercleFinance.com) - Oddo maintains its Outperform rating on Nestlé shares, along with its target price of 118 Swiss francs (current price: 107 Swiss francs, -0.
1%), which suggests a 2023 P/E of 23x.
Compared to Danone and Unilever (2023 P/Es of 14x and 16x respectively), Nestlé's premium may be perceived as a risk by some, the analyst acknowledges. However, the analyst considers it wrong to compare Nestlé to these two stocks, on which the broker also has Outperform ratings.
Oddo therefore says that the near-term risk on Nestlé (in relative terms) is more based on the interpretation of Q3 results, for which the analyst still expects will decline in volume/mix (RIG) to
-1.7% with a price effect of +8.8%.
In short, Oddo says that the basis of comparison in terms of mix/volume is pretty much misunderstood by the consensus between Q3 and Q4.
Copyright (c) 2022 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.
1%), which suggests a 2023 P/E of 23x.
Compared to Danone and Unilever (2023 P/Es of 14x and 16x respectively), Nestlé's premium may be perceived as a risk by some, the analyst acknowledges. However, the analyst considers it wrong to compare Nestlé to these two stocks, on which the broker also has Outperform ratings.
Oddo therefore says that the near-term risk on Nestlé (in relative terms) is more based on the interpretation of Q3 results, for which the analyst still expects will decline in volume/mix (RIG) to
-1.7% with a price effect of +8.8%.
In short, Oddo says that the basis of comparison in terms of mix/volume is pretty much misunderstood by the consensus between Q3 and Q4.
Copyright (c) 2022 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.