Stock Name: NESTLE
Company Name: NESTLE (M) BHD
A good year as expected. Nestle's full-year net profit of RM456m, up 17% YoY, was within our and consensus expectations. Growth was primarily sales-driven, while margins were stable. Although we continue to like Nestle for its strong franchise, valuations are not cheap, with the stock trading at a prospective 2012 PER of 26x, while yields are just about fair at 3.6%. Our Sell call is maintained, but with a raised target price of RM52.40 on rolling forward our DCF valuations.
Maybank Research - 24 Feb 2012
Click here for full report
Company Name: NESTLE (M) BHD
| Research House: MAYBANK | Price Call: SELL | Target Price: 52.40 |
A good year as expected. Nestle's full-year net profit of RM456m, up 17% YoY, was within our and consensus expectations. Growth was primarily sales-driven, while margins were stable. Although we continue to like Nestle for its strong franchise, valuations are not cheap, with the stock trading at a prospective 2012 PER of 26x, while yields are just about fair at 3.6%. Our Sell call is maintained, but with a raised target price of RM52.40 on rolling forward our DCF valuations.
Maybank Research - 24 Feb 2012
Click here for full report
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