Jefferies analyst David Hayes has maintained their neutral stance on NSRGF stock, giving a Hold rating today.
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David Hayes’s rating is based on several considerations surrounding Nestlé SA’s current market position and future outlook. The company’s third-quarter results are expected to show modest growth, with organizational sales growth estimated at 3.9%, slightly above consensus. However, the growth in real internal growth (RIG) is projected to be minimal at 0.5%, indicating underlying challenges in the market.
Moreover, recent data from scanner reports and updates from industry peers suggest ongoing sluggish trends in the US market, which could affect Nestlé’s performance. While the company may benefit from easier comparisons, there are uncertainties regarding strategic decisions by the new CEO and Chair, particularly concerning pricing, operational margins, brand support, and the balance between free cash flow and dividend commitments. These unresolved issues contribute to the Hold rating, as they present potential risks that could impact the stock’s performance in the near term.
In another report released today, Barclays also maintained a Hold rating on the stock with a CHF86.00 price target.