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BUZZ-Nestle India hits over 1-mth high; co plans to focus on volume growth - analysts
August 28, 2017 / 5:29 AM / in 4 months

BUZZ-Nestle India hits over 1-mth high; co plans to focus on volume growth - analysts

** Nestle India Ltd rises as much as 4.8 pct to 6,920 rupees, its highest since July 21

** Nestle says to focus aggressively on driving volume growth through new product launches and other initiatives, analysts say, citing a call with management

** Credit Suisse upgrades stock to “outperform” from “underperform,” says “convinced that a turnaround is finally underway” after Nestle’s investor call

** Adds margins to drop in the turnaround phase due to higher spending on advertisements but are expected to pick up from 2018 and expects sustained intensity of new product launches over the next 2-3 years

** Morgan Stanley issues more cautious note, cuts price target to 5,650 rupees from 5,700 rupees and maintains “underweight” rating

** Says recovery at Nestle will be more gradual due to issues with its core product portfolio

** Nestle shares had gained 9.5 pct this year as of Friday’s close, underperforming a 23.1 pct gain in the Nifty Fast-Moving Consumer Goods index

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