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



OSK Research has raised Nestle (Malaysia) Bhd's earnings forecasts for the financial year 2010 and 2011 by 18 per cent and 20 per cent to RM459.6 million and RM504.7 million respectively, factoring a stronger ringgit and better operating efficiency.

The research house, in its note today, said Nestle's results for the nine-months ended Sept 30, 2010, surpassed earlier etimates with revenue and earnings growing 9.6 per cent and 32.6 per cent, respectively, fuelled by strong domestic and export sales.

On Thursday, Nestle reported a higher pre-tax profit of RM132.65 million for the third-quarter compared with RM106.41 million chalked-up in the same period last year.

The profit was achieved over a bigger revenue of RM991.076 million.

Against this backdrop, OSK has revised upwards its target price for Nestle to RM47.90 per share from RM38.53 per share estimated previously. - BERNAMA