Thursday, 26 April 2012

MIDF Research maintains Neutral on Nestle, target price RM54.55

KUALA LUMPUR (April 26): MIDF Research has maintained its Neutral rating on Nestle (M) Bhd with a target price of RM54.55,and said Nestle’s 1QFY12 net profit was within expectations, accounting for 30.7% and 32.0% of its own and consensus full year estimates respectively.

“We are maintaining our Target Price (TP) for Nestle at RM54.55.

“The TP is derived from Dividend Discount Model, assuming 7.2% WACC and 3.5% growth rate. We continue to like Nestle as a good defensive stock to hold given its reputable household brands and inelastic products demand,” it said in a note Thursday.

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