Analyst David Hayes of Jefferies maintained a Sell rating on Nestlé SA (NSRGF – Research Report), boosting the price target to CHF75.00.
David Hayes has given his Sell rating due to a combination of factors impacting Nestlé SA’s performance. The company’s recent recovery in stock price has been driven by positive outlook reassurances for the fiscal year 2025. However, there are emerging concerns from the US market, which is a significant area for Nestlé, indicating potential challenges ahead.
Hayes points out that the operational margin target of 16% or higher is at risk. The current advertising and promotion spending as a percentage of sales is below historical levels, and the reliance on cost savings could lead to a misalignment in prioritizing sales growth. These factors collectively raise doubts about the company’s ability to sustain its margin expectations, prompting the Sell recommendation.