Nestlé Malaysia steadies after 22% slide as analysts see worst priced in
Nestlé Malaysia's stock has seen a slight recovery after a significant year-to-date decline, with analysts suggesting the worst of the sell-off is over. Despite market volatility, a majority of analysts maintain a 'buy' rating based on the company's underlying financial performance.
Why it matters
The analysis reflects broader market trends where institutional investors are shifting capital toward high-growth sectors like AI, impacting traditional consumer goods stocks.
BURSA SGX Home Stock Focus Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Sept 24): Nestlé (Malaysia) Bhd paused its downward slide on Wednesday, following a 22% year-to-date drop that market observers said has run ahead of the company's underlying fundamentals.
The sell-off has erased about RM5.39 billion from Nestlé Malaysia’s market capitalisation since the start of the year. Based on its RM89.50 closing price on Wednesday (Sept 23), the group's market value stands at RM20.99 billion.
The stock’s recent weakness has been driven primarily by negative sentiment rather than any material deterioration in business fundamentals, said Hong Leong Investment Bank (HLIB) analyst Jonathan Ooi, who maintained his “buy” call on the stock.
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