Nestlé S.A. : Confident for 2012
By Lara Villeneuve
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
CHF 57.1 | CHF 62 | CHF 54.8 | +8.58% |
On February 16th publications showed a strong financial base. Net income stands at 9.49 billion swiss francs, in line with consensus expectations. It can not be compared with net income of the previous year to 34.23 billion which was boosted by the Alcon eye care business sale.
The year 2012 should be marked by an increase of operating margin and organic growth about 5% to 6%, although the economic climate were not favorable to the sector.
After publications the share broke out the CHF 55/56 consolidation area, before consolidating again close to the resistance of CHF 57. Moving averages are well oriented and 20 days one is supporting the trend. In the short term, the short-term resistance crossing of CHF 57.1 offers a buying signal.
Investors may therefore be positioned at buy on the security as soon as this level will be crossed. The goal will be set on the highest from 2007 to CHF 62. A protective stop is engaged on the moving average 50 days to CHF 54.8.