Nestle SA last = 90 CHF 1w: +3.5 (4.1%)
% vs. spot / Price1M6M12MLT(2Y)LT(3Y)
Target Price (consensus)-0.4%-1.1%-4.3% (86)--
Upside (Bull Case)0.5%1.6%6.4% (95.7)--
Downside (Bear Case)-1.2%-3.5%---

I think that Nestle is to accelerate portfolio change (disposal of ill-fitting businesses', faster move in high-growth categories) as well as monetize the LOREAL stake (Nestle is more closely to Nutrition and Healthcare rather than Beauty)


In general, I see no major surprises regarding the company. I expect further organic growth of company and, in the same time, I see positive on company's profitability due to sustainable improvement in its trading profit margins. Further, I believe portfolio rationalization will play an increasingly important role (taking into account very attractive price of the US Confectionery disposal).