Nestle: Ice Cream Exit Reflects Strategic Execution

YR Research5.38K FollowersFollow5ShareSavePlay(8min)Comment(1)SummaryNestlé is rated a 'buy' with a $120 price target, reflecting confidence in the new CEO-led turnaround and improved execution.NSRGY trades at 18x forward earnings, a historical low and 20% below market average, offering attractive risk-reward ahead of potential multiple re-ratings.Strategic divestitures, increased focus on leading brands, and higher marketing spend are driving organic growth and setting the stage for margin improvement.Execution on cost savings, performance-driven culture, and closing value gaps position NSRGY for mid-term growth acceleration and market share gains.HJBC/iStock Editorial via Getty Images For a long time, I described Nestlé (NSRGY) (NSRGF) (NEST:CA) as a bond proxy, and encouraged investors to refrain from holding shares unless they were looking for a low-risk, very-low-reward holding in their portfolio. LastThis article was written byYR Research5.38K FollowersFollowI aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their downside risk is too high.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.