KUALA LUMPUR: CIMB Securities has reiterated its ‘Hold’ rating on Nestlé (Malaysia) Bhd, maintaining a target price of RM92.00. The valuation is based on a weighted average cost of capital (WACC) of 5.9 per cent and a terminal growth rate of 2.5 per cent.
While the stock continues to trade within the RM82.00–RM85.00 range, the research house remains cautiously optimistic. This outlook is supported by recent insights gained during a visit to Nestlé Malaysia’s Maggi manufacturing facility in Batu Tiga, Selangor.
CIMB noted that the site visit provided deeper understanding into Nestlé’s local manufacturing capabilities, the strong market leadership of the Maggi brand, and the company’s sustained focus on product innovation.
From financial years 2020 to 2024 (FY20–FY24), Nestlé Malaysia has invested RM1.5 billion in capital expenditure. These investments have been channelled towards capacity expansion, efficiency improvements, facility upgrades, and regulatory compliance.–BUSINESS TIMES
