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NewsMIDF Research downgrades Nestlé to Neutral, target price RM67.96
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MIDF Research downgrades Nestlé to Neutral, target price RM67.96
by Cals Fri 23 Aug 2013, 10:06
MIDF Research downgrades Nestlé to Neutral, target price RM67.96
Business & Markets 2013
Written by theedgemalaysia.com
Friday, 23 August 2013 09:52
KUALA LUMPUR (Aug 23): MIDF Research had downgraded Nestlé (M) Bhd to a Neutral at RM67.54 with a target price (TP) of RM67.96 and said Nestlé’s 1HFY13 net profit of RM324.7 million was above expectations.
In a note Friday, the research house nonetheless said it anticipates a seasonally weaker 2HFY13 leading to full year FY13 net profit that would come in within its expectation.
MIDF Research said Nestlé’s 2QFY13 revenue grew 5.6% year-on-year (yo-y) on strong domestic demand.
“A higher 18.9% y-o-y growth in operating profit for 1HFY13 due to favourable commodity prices.
“Given that market valuations have caught up with our Target Price (TP), we are downgrading our recommendation on Nestlé to a Neutral with an unchanged TP at RM67.96. The TP was derived at using the Dividend Discount Model, under the assumptions of 7.5% WACC and 3.8% Growth,” it said.
Business & Markets 2013
Written by theedgemalaysia.com
Friday, 23 August 2013 09:52
KUALA LUMPUR (Aug 23): MIDF Research had downgraded Nestlé (M) Bhd to a Neutral at RM67.54 with a target price (TP) of RM67.96 and said Nestlé’s 1HFY13 net profit of RM324.7 million was above expectations.
In a note Friday, the research house nonetheless said it anticipates a seasonally weaker 2HFY13 leading to full year FY13 net profit that would come in within its expectation.
MIDF Research said Nestlé’s 2QFY13 revenue grew 5.6% year-on-year (yo-y) on strong domestic demand.
“A higher 18.9% y-o-y growth in operating profit for 1HFY13 due to favourable commodity prices.
“Given that market valuations have caught up with our Target Price (TP), we are downgrading our recommendation on Nestlé to a Neutral with an unchanged TP at RM67.96. The TP was derived at using the Dividend Discount Model, under the assumptions of 7.5% WACC and 3.8% Growth,” it said.
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