Nestlé shares under pressure: Effects of weight loss injections fuel uncertainty

Nestlé shares under pressure: Effects of weight loss injections fuel uncertainty

According to a report by www.faz.net, the world's largest food company, Nestlé, has seen its share price fall by 7 percent since the beginning of the year. This coincides with the success of Novo Nordisk's weight loss injections, which reduce appetite and reduce preference for fatty foods. Analysts estimate that these weight loss injections are likely to reduce sales in the food industry by a maximum of 1 to 2 percent. The impact on Nestlé is described as exaggerated, as sweets only account for 7 percent of group sales.

Nestlé is also active in the high-margin business of animal feed, coffee and water products and is pushing the business with health-promoting products. Nevertheless, the group is having delivery problems in the promising healthcare division and the share price is currently lagging behind the returns on low-risk government bonds. However, Vontobel analyst Bertschy sees significant upside potential for Nestlé shares.

This downturn in Nestlé shares also has an impact on the Swiss Market Index (SMI), as the food company has a significant influence on the index due to its high stock market value. Another slowdown in the SMI is Roche, whose participation certificates fell by 19 percent due to product discontinuations during the pandemic and setbacks in the development of new drugs. The strong franc is also weighing on Roche's sales.

The biggest winner on the Swiss stock market this year is UBS, whose share price has risen by almost 29 percent due to its takeover of Credit Suisse. This shows that investors see opportunities in the takeover.

Overall, the financial situation of Nestlé and Roche as well as the development of the Swiss stock market is influenced by various internal and external factors. It is important to carefully analyze these factors to make informed financial decisions.