[%MrWS%]
Research by RHB
Neutral – TP RM119

“Subdued Consumer Sentiment Persists"

Maintain NEUTRAL with lower MYR119 TP from MYR131, 3% downside. Nestle’s 1H24 results underperformed expectations on lower-than- expected sales – negatively impacted by cautious consumer sentiment. Immediate-term earnings outlook is challenging, in view of the inflationary pressures constraining the consumer spending but we expect Nestle to weather through the challenging times thanks to its entrenched fundamentals. As such, we maintain our stance on the stock as the current valuation at -1.5 SD may have priced in the challenges.

Analyst:
Soong Wei Siang 
[%XlQW%]

$KLSE-NESTLE
Research by RHB
Neutral – TP RM119

“Subdued Consumer Sentiment Persists"

Maintain NEUTRAL with lower MYR119 TP from MYR131, 3% downside. Nestle’s 1H24 results underperformed expectations on lower-than- expected sales – negatively impacted by cautious consumer sentiment. Immediate-term earnings outlook is challenging, in view of the inflationary pressures constraining the consumer spending but we expect Nestle to weather through the challenging times thanks to its entrenched fundamentals. As such, we maintain our stance on the stock as the current valuation at -1.5 SD may have priced in the challenges.

Analyst:
Soong Wei Siang 
soong.wei.siang@rhbgroup.com

$NESTLE / 4707 (NESTLE (MALAYSIA) BERHAD)