(News Bulletin 247) – Oddo reiterates its Outperformance recommendation with a target price of 118CHF on the Nestlé share.
‘Over one year the stock (-5%) outperformed the Stoxx 600 index’ notes the analyst for whom the group ‘shows its capacity for resilience in a difficult inflation context for a reasonable valuation multiple (PE 23e: 21x ) ‘.
Uncertainty remains in the Food HPC sector on the resilience of the mix/volumes in the face of price increases.
“Basically we believe that the expansion of the portfolio and the strategic refocusing of recent years should enable Nestlé to resist better,” says Oddo.
‘Financially, we highlight the many factors supporting EPS growth that we expect in 2022 and 2023 (+7% and +8% respectively). ‘
For Oddo, in 2023, nearly half of this growth should come from organic growth, but the other half should be fueled by the start of a recovery in operating profitability and by the accretive effect of the share buyback program.
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