Analyst: Nestle's recovery seems sustainable.

RHB Investment Bank analyst Soong Wei Siang stated in a report that with effective marketing activities boosting customer spending, Nestle's business recovery appears sustainable. He mentioned that the decrease in raw material costs such as cocoa, wheat, milk powder, and sugar, along with the strengthening of the Ringgit, should help in the recovery of profit margins. He also noted that with Nestle's exposure in staple food products, government cash assistance is seen as a supportive factor. With support from wage growth and stable employment, staple food consumption is expected to remain resilient. RHB has raised Nestle's target price from 120 Malaysian Ringgit to 135 Malaysian Ringgit and maintained a buy rating on the stock. The stock price fell by 0.2% to 115.80 Malaysian Ringgit.