In 2009, the Nestlé Group’s sales reached CHF 107.6 billion, with organic growth of 4.1%, including real internal growth of 1.9%. Foreign exchange impacted sales by -5.5% and divestitures, net of acquisitions, by -0.7%. Food and Beverages’ sales reached CHF 99.8 billion, with organic growth of 3.9%, including real internal growth of 1.6%. Foreign exchange impacted Food and Beverages’ sales by -5.7% and divestitures, net of acquisitions, by -0.7%. Underlying earnings per share rose by 9.6% from CHF 2.82 to CHF 3.09, or 16.3% in constant currencies. Net profit was CHF 10.4 billion in 2009 and earnings per share were CHF 2.92. These figures are not directly comparable with 2008 because of the CHF 9.2 billion profit on the disposal of 24.8% of Alcon in 2008.

Vontobel increases its price target on Nestle to CHF60 from CHF58 as the Swiss food maker's valuation is still slightly below its peers, which isn't justified. "Given the low comparison base in the first half and good growth momentum, we expect good news flow in the first quarter and good first-half results," says Vontobel. Rating reiterated at buy.

UBS lifts Nestle price target to CHF60 from CHF55 on upward revision of earnings estimates with EPS now pegged at CHF3.24 versus CHF3.10 for 2010 and at CHF3.48 versus CHF3.37 for 2011. Bank points out the strong organic growth in 4Q was driven by price increases. It adds the company's significant discount to Unilever (UN, UL) and Danone (BN.FR) is "anomalous." Reiterates buy rating. 

Helvea increases its price target on Nestle to CHF59.50 from CHF52 expecting the company to achieve "normalized" mid-term growth in 2011. "Nestle has delivered strong full-year results, with all regions and categories showing progress, and we see its investment story as being fully intact," Helvea says. Rating maintained at accumulate.

Credit Suisse raises Nestle 2010 EPS estimate to CHF3.19 from CHF3.14 following the company's 2009 results. "This is essentially driven by a lower tax rate guidance of 28% versus 29% previously," says Credit Suisse. Notes it looks like Nestle saw good momentum going into 2010 and cost control is strong, too. Keeps outperform rating, CHF60 price target.