Nestlé S.A.

Analyst thesis

Our recommendation is based on:

• Nestlé has a wide range of products with a strong brand and market position across multiple geographical regions.

• Higher inflation input costs have been shown to be partially passed on to consumers through pricing.

• Organic growth has primarily been driven by pricing, with volumes remaining subdued.

• Valuations appear attractive on a P:E and EV/EBITDA basis, but current risks to margins, earnings and organic growth limit upside potential.