Stock Name: NESTLE
Company Name: NESTLE (M) BHD
Research House: MAYBANK

KUALA LUMPUR: Maybank Investment Bank Research said reiterated its Buy call on NESTLE (M) BHD [] and a discounted cashflow-based target price of RM43.86 on earnings growth of 10-14% per annum in the 2010-12 period.

'Our market-contrarian pick is already 3% higher after just five working days of trading.'' Allied to its high quality earnings, an upward re-rating on Nestle's earnings growth potential is certain to excite investors who can accept the lack of trading liquidity in the shares,' it said.

Maybank IB Research said both export and local sales returned to positive growth territory in the 12-month period up to 2Q10.

For export sales especially, it was the first positive growth registered since 2Q09, when the impact of the global recession coincided with the unveiling of new export capacity.

'The generally upbeat domestic consumption indicators locally and in neighbouring countries will bode well for Nestle's sales trends in the rest of 2010-12,' it said.