Citi opens ‘positive Catalyst Watch’ on Nestle into Q1 report

Citi says Nestle’s catalyst path has turned more supportive while the stock’s relative valuation is 5% below its long-term average. Citi’s analysis suggests little downside risk to real internal growth expectations in Q1, which it says "should buy time" ahead of a margin rebuild story starting in the second half of 2023, supported by product rationalization benefits and Nestle’s exposure to profit pools with enough pricing discipline. The firm opened a "positive Catalyst Watch" on the shares and keeps a Buy rating on the name with a CHF 130 price target.