NESTLÉ: "Not a shot in the arm, just CG!"

The latest change at the top of the Swiss food giant NESTLÉ is a "found food" for the print media. Of course, such personnel changes are a talking point, but what bothers us about the whole "personnel circus" is the frequently used term "crisis"! In our opinion, NESTLÉ is not in a crisis, at most in a somewhat difficult situation on the aforementioned personnel front, the resulting strategy issues and the associated growth prospects... not to mention in an overall difficult economic environment. The fact that the "ex-CEO" Laurent Freixe failed due to a not reprehensible feeling of love - after only a short time in office - somehow fits in with today's sometimes glorified view of the world and the "regulators" that stand above everything else. Nevertheless, we also agree that the step of immediate dismissal was correct, because the established parameters of corporate governance must be adhered to unequivocally! Why did Laurent Freixe not disclose his love affair with the lady under his command? Surely one can and should be open about a love affair? Did he underestimate the situation or simply carelessly ignore it? We don't know and we don't want to know! Rather, we should or must now focus even more on the future and in this respect we are not as negative as some analysts! On the contrary, we see the election of the new CEO Philipp Navratil as an even greater opportunity for things to change at NESTLÉ in the foreseeable future. In any case, we support the nomination of a "young", 49-year-old and proven expert. We will see how much innovation he can bring in, but he must definitely be willing and courageous to perhaps initiate certain changes... or simply "underpin" the tried and tested!

NESTLÉ is certainly not an absolute "growth play", but we remain convinced that the current share price is a good entry opportunity! Target price: CHF 89!