Nestlé shares fall to lowest level since the beginning of 2019
Published: Friday, Sep 20th 2024, 17:20
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The decline in Nestlé shares accelerated at the end of the week. On Friday afternoon, the shares of the food giant reached a level last seen at the beginning of 2019.
At around 4.45 p.m., Nestlé shares were down 3.2 percent on the Swiss stock exchange, trading at just 82.64 francs. The shares have been in a nosedive since the beginning of the year; in January they were still trading at around 100 francs.
The main trigger for the share price slide on Friday was a pessimistic analyst commentary from UBS. The expert further lowered both his profit forecasts and the price target for the shares. He assumes that the food company will revise its forecasts for 2024 downwards.
A share trader told the news agency AWP on Friday afternoon that several analysts had recently significantly reduced their estimates and price targets. For example, analysts at Morgan Stanley downgraded their rating to "underweight" at the beginning of the week. In addition, some "safe-haven" purchases of the defensive stock from the weekend would now be dropped, noted another market observer.
According to the retailer, the market is also realizing that many of the French-speaking Swiss group's problems are homemade. Competitors such as Danone could show significantly better results. At the end of August, Nestlé surprisingly replaced its CEO. Now the Nestlé veteran Laurent Freixe is to get the company back on track.
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