Update shared on 29 Nov 2025
Fair value Increased 0.34%Nestlé's analyst price target has edged up from CHF 87.75 to CHF 88.05, reflecting analysts' expectations of improved company performance and a more balanced risk outlook in recent research updates.
Analyst Commentary
Recent research updates reflect a mix of optimism and caution among analysts regarding Nestlé's valuation, performance outlook, and risk profile. While some analysts see upside potential, others remain cautious in the near term.
Bullish Takeaways
- Bullish analysts note that the current share price is factoring in excessive risk. Fundamentals indicate the potential for improved financial performance, particularly by 2026.
- Several price target increases highlight confidence in the company’s ability to deliver more balanced growth and execution over time.
- Upgrades reflect a belief in stabilization of core businesses and a reduction in perceived downside risk for investors.
- Higher price targets from bullish commentary are tied to expectations for improved earnings quality and operational efficiency in the medium term.
Bearish Takeaways
- Bearish analysts continue to express caution and maintain Hold or Underweight ratings, despite modest price target increases.
- Concerns remain about the pace and consistency of anticipated improvement in financial results, especially in the near term.
- There is skepticism about how quickly Nestlé can address broader industry challenges and return to a sustainable growth trajectory.
What's in the News
- Nestlé investors call for Chairman Paul Bulcke to step down after a second consecutive CEO departure, citing instability and governance concerns (The Financial Times).
- Philipp Navratil appointed as Nestlé’s new CEO following the dismissal of Laurent Freixe due to a conduct investigation (The Wall Street Journal).
- Navratil is tasked with reversing a yearslong share price slide and restoring stability as he signals commitment to existing strategy (The Wall Street Journal).
- The new CEO announces plans to cut 16,000 jobs over two years, representing about 6% of the workforce, in an effort to boost operational efficiency.
- Nestlé reaffirms its full-year 2025 sales growth guidance and anticipates improved organic expansion despite ongoing challenges.
Valuation Changes
- Consensus Analyst Price Target has risen slightly, moving from CHF 87.75 to CHF 88.05.
- Discount Rate remains virtually unchanged and holds steady at approximately 3.86%.
- Revenue Growth projection has fallen marginally, moving from 1.95% to about 1.95%.
- Net Profit Margin is down slightly, decreasing from 12.44% to 12.41%.
- Future P/E ratio has increased modestly, moving from 21.11x to 21.24x.
Disclaimer
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