Nestle SA last = 81 CHF 1w: -0.8 (-1%)
% vs. spot / Price1M6M12MLT(2Y)LT(3Y)
Target Price (consensus)0.4%1.2%---
Upside (Bull Case)0.9%2.7%---
Downside (Bear Case)-1%-3.1%---

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).