Stifel Nicolaus analyst Cedric Norest maintained a Hold rating on Nestlé SA (NSRGF – Research Report) today and set a price target of CHF89.00.
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Cedric Norest’s rating is based on several factors influencing Nestlé SA’s current market position. The company’s better-than-expected financial results for FY24 and the confirmed guidance for FY25 are positive indicators, suggesting that progress is being made. However, the uncertain balance between volume, mix, and pricing amidst ongoing inflationary pressures poses a risk to consistent growth.
Norest noted that while the company’s efforts to improve its organic sales growth outlook are promising, challenges remain. The gross margin decline and increased advertising and promotion expenses are not fully offset by cost savings, impacting the FY25 operating margin. Additionally, external factors such as fluctuating cocoa and coffee prices continue to pressure demand elasticity, leading to a cautious approach reflected in the Hold rating.
According to TipRanks, Norest is an analyst with an average return of -20.6% and a 33.33% success rate.
In another report released on February 14, Barclays also maintained a Hold rating on the stock with a CHF90.00 price target.