Nestlé's New CEO Calls for Rapid Transformation as Shares Hit New High
Nestlé's newly appointed CEO, Philipp Navratil, has called for a speedy transformation of the company to better serve consumers and adapt to rapid market changes. He urged employees to embrace new ideas and take responsibility. Meanwhile, Nestlé's shares have risen by 4.6 percent since Monday, reaching a high not seen since early September.
Navratil's announcement comes amidst a positive week for Swiss stocks. The Swiss Market Index (SMI) hit over 12,500 points for the first time since early April. This uptick was partly driven by pharmaceutical stocks, which surged mid-week following Pfizer's agreement with the U.S. government. Roche, Novartis, AstraZeneca, and Sanofi all saw their stocks rise.
Analysts have mixed views on Nestlé's prospects. Vontobel analyst Jean-Philippe Bertschy rates Nestlé as a 'Buy' with a price target of 90 francs, citing potential growth and improved management. However, Jefferies analyst David Hayes is more cautious, rating Nestlé as a 'Hold' with a price target of 77 francs, expressing doubts about the new management's ability to address key issues.
Roche, another major Swiss company, has seen its stock improve by 13.7 percent since the beginning of the week. HSBC upgraded Roche's shares to 'Buy' with a new price target of 320 francs, while BNP Paribas maintained its 'Outperform' rating with a raised price target of 308 francs. UBS predicts organic sales growth of 4.1 percent for Nestlé in the third quarter.
While Nestlé's new CEO outlines ambitious plans for transformation, investors seem optimistic, with shares reaching new highs. However, analysts' views on the company's prospects differ. Meanwhile, the Swiss stock market continues to perform strongly, with the SMI reaching a new peak and pharmaceutical stocks leading the way.
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