Cedric Norest, an analyst from Stifel Nicolaus, maintained the Hold rating on Nestlé SA (NSRGF – Research Report). The associated price target remains the same with CHF89.00.
Cedric Norest has given his Hold rating due to a combination of factors influencing Nestlé SA’s current market position. The company’s organic sales growth is projected to be moderate, with a slight increase driven primarily by pricing adjustments rather than volume growth. This indicates that while there is some positive momentum, it is not robust enough to warrant a more favorable rating.
Additionally, Nestlé faces challenges such as cost inflation, particularly in coffee and cocoa, which are expected to pressure margins. The company’s strategic initiatives, although promising, are anticipated to take time to materialize fully. Given these uncertainties and the current trading discount relative to historical valuations, Norest believes a Hold rating is appropriate as the company works to achieve its targets.
In another report released on March 26, Barclays also maintained a Hold rating on the stock with a CHF90.00 price target.
Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NSRGF in relation to earlier this year.