Nestle downgraded to Hold from Buy at HSBC

HSBC analyst Jeremy Fialko downgraded Nestle to Hold from Buy with a price target of CHF 123, down from CHF 130. While Nestle’s fundamental attractions remain, the group’s valuation versus peers is right at the top of its historical range, making it hard for Fialko to see any meaningful re-rating, the analyst tells investors in a research note. Additionally, Fialko does not see any scope for Nestle’s results to materially exceed consensus in the coming quarters given ongoing inflation, tough 1H23 volume comparatives and a base with unusually low marketing spend from 1H22.