Jefferies has downgraded Nestle SA from a Hold to an Underperform rating due to concerns over the company's financial outlook for fiscal year 2024.

Reasons for Downgrade

The downgrade is driven by worries regarding the late implementation of cost-cutting measures and persistent inflation affecting key inputs.

Jefferies predicts a decrease in consensus operating margin forecasts, which could impact earnings per share.

Other Analyst Ratings

Despite the downgrade, other financial institutions have shown interest in Nestle.

• Goldman Sachs has initiated coverage on the company with a Buy rating, highlighting its strong market presence.
• RBC Capital has maintained its Outperform rating.
• Morgan Stanley has upgraded Nestle's rating from Underweight to Equalweight.
• Redburn-Atlantic has also adjusted its financial outlook for Nestle.

Implications for Investors

The mixed signals from analysts present a complex picture for investors.

The anticipated announcement of Nestle's cost-saving measures and operating margin guidance will be closely watched.

Nestle's ability to refine its business strategy under new leadership will be critical.

Investors are advised to remain vigilant and consider the implications of the upcoming financial disclosures.