Nestle Malaysia lifted to 'hold' (4707)

Maybank Research raised its call on food manufacturer Nestle Malaysia
Bhd to "hold" from "sell" on the back of a stronger earnings and
exports outlook.

"Nestle's ongoing heavy capex is supporting
the group's earnings momentum, particularly with an upcoming plant
which should provide additional capacity," Maybank said in a note.

Maybank raised its 2013-2014 earnings forecast by 2-3 percent due to
stronger export projections and after Nestle reported a 10 percent
export sales growth in the first quarter of 2012.

"While more
than 50 percent of Nestle's exports are to ASEAN countries, there is
still much potential outside ASEAN given that Nestle Malaysia is being
positioned as the halal food hub for the Nestle group," Maybank said,
referring to the Association of Southeast Asian Nations.

Maybank also revised its target price upwards to RM54.20 (US$17.17) per
share from RM52.40 earlier. As of 9.25 am, Nestle shares rose 0.32
percent against the Malaysian benchmark stock index's 0.06 percent
gain. -- Reuters

NESTLE 4707

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