Nestle SA
NESN: XSWX (CHE)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CHF 373.00 | Nvr | Xldlfrbz |
Nestle's Exposure to Favourable Categories and a Wide Moat Support Profitable Growth Ahead
Business Strategy and Outlook
Although Nestle's performance during the pandemic has been nothing short of stellar, we believe the main drivers of this outperformance have been fueled by pandemic-led lockdowns—millions of households have adopted pets, and consumption of coffee at home has been boosted by work-from-home trends. While we don't expect a complete reversal of these trends in the future, we do expect outperformance to be less pronounced in the years ahead. We expect organic growth to slow toward the 5% level by the end of our explicit forecast period.