5 Best European Companies To Invest In

1. Nestlé S.A. (OTC:NSRGY)

Number of Hedge Fund Holders: 4

Stock performance YTD through November 27: -12%

Nestlé S.A. (OTC:NSRGY) is one of the biggest European companies, with a market capitalization of $387.1 billion. Nestlé S.A. (OTC:NSRGY) is a Swiss multinational food and beverages conglomerate, with flagship brands including Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Vittel, and Maggi. 

Barclays analyst Warren Ackerman inflated the price target on Nestlé S.A. (OTC:NSRGY) to CHF 135 from CHF 130 and kept an Overweight rating on the shares on December 9.

The company reported that total sales increased 2.2% year-over-year to CHF 63.3 billion for the nine months ending September 2021, and Nestlé S.A. (OTC:NSRGY)’s organic growth expanded by 7.6% over the period. 

Tom Russo’s Gardner Russo & Gardner is the largest Nestlé S.A. (OTC:NSRGY) stakeholder as of Q3, with 9.5 million shares worth $1.14 billion. Overall, 4 hedge funds in the third quarter database of Insider Monkey were bullish on Nestlé S.A. (OTC:NSRGY). 

Here is what Semper Vic Partners has to say about Nestlé S.A. (OTC:NSRGY) in its Q2 2021 investor letter:

“I believe that Nestlé shares are well-positioned in our portfolios based on its global growth potential. Nestlé’s global growth potential is a dividend from their trusted consumer brands’ 100-year command presence in over 100 countries. Over these years, Nestlé has developed trusted and cherished iconic brands. For instance, Nestlé has over 30 brands that have over $1 billion of annual turnover. Nestlé benefits from a vast Total Addressable Market (TAM) available through developing and emerging market consumers shifting from subsistence economies to the introduction of market-based economies. Nestlé benefits from its market leadership in two key categories that evidence extremely high brand loyalty – global pet food/care and global premium coffee (led by Nestlé’s globally leading Nespresso).

More importantly, Nestlé has a culture of long-term investing. Nestlé has long excelled at securing new markets and rolling out new products, often adjacent to long-standing brands. They also have a history of internal innovation (e.g., behind launch of new brand’s single-serve coffee platform, as a result of external acquisition of companies whose brands, technology, patent, manufacturing, route-to-market, adjacent category presence, etc., offer powerful long term returns on incremental investments deployed to meet demands of growing consumers and growing affordability for those consumers of Western-style goods and services).(Click here to see the full text)

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