Morgan Stanley analyst Sarah Simon downgraded Nestle (NSRGY) to Underweight from Equal Weight with a price target of $91, up from $83. Nestle has outperformed Danone year-to-date and the stock’s valuation is now stretched at a 12% relative premium, the analyst tells investors in a research note. The firm says Nestle is in the early stages of a turnaround, which is “not yet proven,” and its near-term financial targets are limiting the amount that it can reinvest in the business.
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