November 8, 2011

Affin Research maintains Add to Nestle, TP RM51.95



KUALA LUMPUR (Nov 8): Affin Investment Bank Research is maintaining its ADD recommendation for Nestle with an unchanged target price of RM51.95.

It said on Tuesday it was maintaining its FY11-13 net earnings forecasts. It ''continues to advocate Nestle as a defensive stock.

Affin Research cited Nestle's proven track record in effective cost management; high dividend yields of 4%-4.6%; strong growth prospects in the export markets, and the firm position its products have as a household staple.

'Maintain ADD, with a DDM-derived target price of RM51.95. Key risks to the stock are: 1) a sharp slowdown in consumer spending, and; 2) increased volatility in prices of Nestle's key commodities,' it said.

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