Nestle SA
NESN: XSWX (CHE)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CHF 157.00 | Pbhp | Fwzrxtk |
Nestle Is Not Immune to Inflationary Pressures, but Wide Moat Supports Best-in-Class Performance
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 benefited from 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 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 below 4% by the end of our explicit forecast period.