Analyst David Hayes from Jefferies maintained a Sell rating on Nestlé SA (NSRGF – Research Report) and keeping the price target at CHF67.00.
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David Hayes has given his Sell rating due to a combination of factors. The update from Nestlé SA was somewhat reassuring, particularly for those who anticipated a step back from the 16% operating margin target for 2025 and a stable dividend strategy aimed at reducing debt. Additionally, there was a positive outcome in terms of organic sales growth for the fourth quarter, albeit aided by an extra trading day.
However, Hayes expresses concerns regarding the commitment to future organic sales growth, suggesting it may be lacking strength. The company’s approach appears to be a compromised strategy, as the margin guidance includes a significant clawback and advertising and promotion expenses remain lower than expected. This potentially uninspiring strategy at current levels contributes to the Sell rating.
Based on the recent corporate insider activity of 12 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.