In This Article:
Investing.com --Nestle SA's (SIX:NESN) steep stock decline has attracted money manager J. Stern (AS:PBHP)&Co, which sees the Swiss consumer goods giant as a buying opportunity despite market concerns about its turnaround.
Nestle (NS:NEST) shares have dropped 25% this year, marking their largest annual decline on record. Bloomberg reported that Christopher Rossbach, J. Stern’s chief investment officer, said his firm’s World Stars Global Equity fund has been adding to its Nestle holdings, calling the stock “far too cheap.”
“The time to buy a quality company like Nestle is now, when investors have lost faith in it,” said Rossbach according to the Bloomberg report.
Nestle has faced a challenging year, including a cut in sales guidance, the abrupt exit of its CEO, and worries over weight-loss drugs impacting consumer eating habits. Still, the stock is trading at a 25% discount to its 10-year average valuation.
Analysts on average expect Nestle shares to gain more than 20% from current levels, according to Bloomberg data.
Related Articles
Nestle stock is too cheap, says major investor
VW and workers inch towards cost-cutting deal, sources say
Morocco stocks lower at close of trade; Moroccan All Shares down 0.02%