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Nestle Cut to Hold From Buy by SocGen, Stock "Too Frothy" -- Market Talk

27 Jun 2017 10:17 am

1017 GMT - SocGen downgrades Nestle to hold from buy, saying the stock is "becoming too frothy" following the news that activist investor Third Point has bought a 1.25% stake in the packaged foods giant and is pushing for changes. Although Third Point's views aren't new and were likely already being considered inside Nestle, says SocGen, "with elevated expectations and Nestle trading at a premium vs a discount previously, it increases the chance of disappointment" at the upcoming investor day in September. "CEO Mark Schneider will drive change but it will take time to turn this supertanker around." SocGen keeps its target price at CHF93. Nestle shares trade down 0.9% at CHF84.90. (Saabira.Chaudhuri@wsj.com , @SaabiraC)

(END) Dow Jones Newswires

June 27, 2017 06:17 ET (10:17 GMT)

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