0910 GMT - Nestle has significant value-enhancing factors despite the disappointing share performance, Vontobel analyst Jean-Philippe Bertschy says in a note. The maker of KitKat chocolate bars and Nescafe coffee faces a number of short-term headwinds, which include surging raw material prices and outlook uncertainties related to weight-loss drugs. While investors mainly focus on Nestle's ability to accelerate organic sales growth, Vontobel is optimistic on the attractive valuation. "We believe it is equally, if not more, important to consider the additional cash that Nestle is set to generate as a result of relatively lower capex and net working capital - a significant value-accretive factor," Bertschy adds. Shares are down 0.7% at 77.62 Swiss francs. (michael.susin@wsj.com)
(END) Dow Jones Newswires
January 29, 2025 04:11 ET (09:11 GMT)
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