Nestle assumed with Underperform from Hold at Jefferies

Jefferies downgraded Nestle to Underperform from Hold with a price target of CHF 86, down from CHF 115, after assuming coverage of the name. The firm is cautious on the food and household and personal care sector as it expects a further year of de-rating, catalyzed by below-consensus estimates. The analyst prefers value names with operating margin upside, or good categories not fully valued, while avoiding “those with meaningful reinvestment still needed” or priced for “perfection.”