NSRGY - Nestle: Q1-23 Results Demonstrate Pricing Power And Sticky Demand
2023-05-27 22:32:21 ET
Summary
- Nestle published its Q1-23 revenue numbers, beating analysts' consensus and demonstrating its pricing power with resilient demand for its products despite ongoing price increases.
- Organic growth reached 9.3%, as a 9.8% price contribution was slightly offset by negative mix and volume. Growth was broad-based across most geographies and categories.
- Management reaffirmed its 2023 guidance for organic growth of 6%-8%, underlying operating margin to expand to 17%-17.5%, and underlying EPS growth of 6%-10%, signaling portfolio optimization is on track.
- I reiterate a Buy rating, with a price target of CHF 124.4 per share or $137.7 per ADR, reflecting a 12% upside.
- It's not a potential ten-bagger, but Nestle should be a cornerstone in any long-term dividend investor's portfolio.
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Nestle: Q1-23 Results Demonstrate Pricing Power And Sticky Demand