April 17, 2018 / 4:41 AM / 4 months ago

BUZZ-Nestle India hits record high; GS, CLSA raise TP

** Nestle India Ltd climbs as much as 2 pct to an all-time high of 8,924.90 rupees

** Stock on track to gain for fourth straight session

** Goldman Sachs raises CY2018-20 EPS estimates for Nestle India by 3-5 pct to reflect higher sales growth

** GS forecasts average domestic sales growth of 15 pct over CY18-20 driven by demand for new products like Greek yogurts and brand extensions under the Milkmaid brand

** GS raises TP to 7,354 rupees from 6,786 rupees; keeps ‘neutral’ rating on stock

** CLSA says strong growth in earnings along with reduction in working capital drove free cash flow growth of 20 pct y-o-y in 2017

** CLSA raises TP to 9,750 rupees from 8,950 rupees, but downgrades stock to ‘outperform’ from ‘buy’, citing a 13 pct surge in past one month

** CLSA says Nestle trades at 54x one-year forward PE which should sustain in the context of 19 pct EPS Compound Annual Growth Rate

** Of 32 analysts covering stock, 22 have a “buy” or higher rating, 6 “hold”, while 4 at “sell” or lower ratings; median PT at 8,650 rupees - Thomson Reuters Eikon data

** Stock has risen over 27 pct in nearly 10 weeks up to Monday since hitting a multi-month low on Feb 8 versus a 2 pct gain in the Nifty FMCG index

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