Nestle (Malaysia) Appears Attractive as Boycott Pressure Has Likely Eased -- Market Talk

0130 GMT - Boycott-related pressures on Nestle (Malaysia) stemming from the Israel-Hamas war have likely eased, with their impact on earnings expected to fade further, says AmInvestment Bank analyst Heng Yii Paul in a note. The stock is down more than 25% from its January high, but boycott concerns and rising input costs have mostly run their course, he says. Margins could temporarily weaken as El Nino pushes up commodity prices though past episodes suggest the impact typically lasts one to two quarters. Restructuring efforts could also improve profitability, with more cost cuts likely in Malaysia. He views the current stock price as an attractive entry point, with the risk-reward ratio skewed to the upside. AmInvestment Bank is reinitiating coverage with a buy rating and a 135-ringgit target price. Shares are 0.5% lower at 89.04 ringgit.(yingxian.wong@wsj.com)

(END) Dow Jones Newswires

September 23, 2026 21:30 ET (01:30 GMT)