UBS Tweaks Nestlé Forecasts After Q2 Results

11:29 AM EDT, 07/24/2026 (MT Newswires) -- UBS Global Research adjusted its forecasts for Nestlé (NESN.SW) following the consumer goods giant's "underwhelming" second-quarter earnings report. "On an underlying basis (i.e. ex IMF, China and some pre-buy in Petcare), [real internal growth] seemed to slow in Q2 vs. Q1 (see our reconciliation on the next page) with Petcare, Europe and North America falling short of street's forecasts and signalling a less broad based & linear improvement than initially hoped. With comps getting tougher in the back half and an uncertain customer, consumer and commodity cost backdrop, we see Nestlé as being again a 'show me story' with a clear pick up in RIG over the coming quarters needed for the shares to re-rate further," analysts wrote in a Friday note. "We believe that the next couple of quarters should bring some visibility on the progress made by the company since implementing its new strategy in late 2024." The research firm edged up its 2026 organic growth estimate to 3.5% from 3.3% as it took into account a lower foreign exchange headwind, while the projected net financial result was trimmed. The adjusted EPS forecasts for 2026 through 2028 were also increased by 2%. The neutral-rated Swiss stock has a price target of 80 francs.