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UBS has maintained a "Neutral" rating for Nestlé shares with a price target of 91 francs, citing an expected decline in operating margin for 2025 and a revised outlook for 2024 that may lower consensus earnings estimates. Despite a 3.3% increase in share price, Nestlé has seen an 8.3% drop since the start of 2024, with Q4 2024 results set to be announced on February 13, 2025.
Nestlé S.A., the world's leading food group, generates sales across various product families, including powdered and liquid beverages (26.7%), pet food (20.3%), and pharmaceutical, nutrition, and wellness products (16.4%). The company also offers prepared dishes and seasonings (12.5%), dairy products and ice creams (11.8%), chocolates and confectionery (8.7%), and packaged waters (3.6%). Geographically, sales are concentrated in the United States and Canada (35%), followed by Asia and Oceania (21.4%) and Latin America (13.7%).
UBS has rated Nestlé S.A. as 'Neutral' with a target price of 91 francs. As the largest food group globally, Nestlé's sales are diversified across various sectors, including beverages (26.7%), pet food (20.3%), and pharmaceuticals (16.4%), with significant market presence in the USA and Canada (35%).
UBS has maintained a "Neutral" rating on Nestlé with a price target of 91 francs following the analysts' conference on quarterly figures. The company anticipates a further decline in operating margin for 2025, which, along with a revised outlook for 2024, is expected to lower consensus earnings estimates. Nestlé has not reiterated its growth forecast for organic sales but aims to outpace industry growth.
UBS has maintained a "Neutral" rating on Nestlé with a target price of 91 francs following the analysts' conference on quarterly figures. The food manufacturer anticipates a further decline in operating margin for 2025, which, along with a revised outlook for 2024, is expected to lower consensus earnings estimates. Nestlé has not reiterated its growth forecast for sales from its own resources but aims to outpace industry growth.
UBS has maintained a 'Neutral' rating on Nestlé, setting a price target of 91 francs following the recent analyst conference. The food manufacturer anticipates a further decline in its operating margin for 2025, which, along with a revised outlook for 2024, is expected to lower consensus earnings estimates. Nestlé has not reiterated its growth forecast for sales from its own resources but aims to outpace industry growth.
Foreign Portfolio Investors Societe Generale, Tiger Pacific Master Fund, and UBS Principal Capital Asia have reduced their stakes in One 97 Communications, the parent company of Paytm, to below 1% as of the September quarter. Paytm shares fell to Rs 700, down 3% intraday, despite an 80% rally over the past six months, contrasting with a 12% gain in the S&P BSE Sensex. However, the stock is down 25% year-on-year, following a widened net loss of Rs 838.9 crore in the June quarter and a 36% decline in revenue.
Nestlé's new CEO, Laurent Freixe, has lowered the company's growth expectations for 2024 to around 2.0% due to weakened consumer demand and inventory reductions by retailers. The company reported total sales of 67.1 billion Swiss francs in the first nine months, with a restructuring of the Executive Board underway to adapt to the challenging market environment. Key product categories like coffee and pet food showed growth, while dairy and culinary segments faced declines.
The SMI closed higher, driven by gains in Nestlé, Lonza, and ABB, while Wall Street experienced a record chase. In Tokyo, the Nikkei index fell 0.6% amid pressure on technology stocks following a sales warning from ASML, with investors awaiting TSMC's quarterly report, expected to show a 42% profit increase. Major chipmakers like Tokyo Electron and Advantest saw significant losses as the market adjusted ahead of these announcements.
On October 17, 2024, RTS announced 19 layoffs as part of its 2025 savings plan. In other news, former One Direction frontman Liam Payne tragically died at 31 after falling from a hotel. Additionally, Switzerland will provide three demining vehicles to Ukraine, and UBS has been instructed by FINMA to revise its contingency plans following the Credit Suisse crisis.
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