[%dgsZ%]
Research by MIDF
Neutral – TP RM126.00

“Headwinds Remain Amid Efforts to Mitigate Risks"

Nestle is currently trading at an FY25F P/E ratio of 35.6x, which is below its two-year average P/E ratio of 43.1x. Additionally, it offers a 2.6% dividend yield in FY24F. Downside risks include (i) a sudden increase in commodity prices, notably cocoa, coffee and dairy; (ii) surging energy costs which would disrupt the value chain; (iii) stronger USD against MYR exchange rates; and (iv) weaker-than-expected consumer demand due to macro-economic headwinds and consumer sentiments in line with geopolitical tensions, regulatory changes and inflationary pressures.

Analyst:
MIDF Research
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$KLSE-NESTLE
Research by MIDF
Neutral – TP RM126.00

“Headwinds Remain Amid Efforts to Mitigate Risks"

Nestle is currently trading at an FY25F P/E ratio of 35.6x, which is below its two-year average P/E ratio of 43.1x. Additionally, it offers a 2.6% dividend yield in FY24F. Downside risks include (i) a sudden increase in commodity prices, notably cocoa, coffee and dairy; (ii) surging energy costs which would disrupt the value chain; (iii) stronger USD against MYR exchange rates; and (iv) weaker-than-expected consumer demand due to macro-economic headwinds and consumer sentiments in line with geopolitical tensions, regulatory changes and inflationary pressures.

Analyst:
MIDF Research
research@midf.com.my

$NESTLE / 4707 (NESTLE (MALAYSIA) BERHAD)