Nestlé SA – Recent Strategic and Governance Developments

Reduction of Ice‑Cream Exposure

On 18 February 2026, Nestlé SA announced that it is evaluating a reduced role in the ice‑cream market. The company is considering options that may include a lower stake in its joint venture Froneri, which has recently attracted significant external investment. The move follows an internal review by Chief Executive Officer Philipp Navratil, who is reassessing the breadth of Nestlé’s operations. Bloomberg News reported that the company is “weighing further reducing its footprint in the ice‑cream business.”

Board of Directors Re‑Structuring

Nestlé has proposed new candidates for its board of directors.

  • Thomas Jordan, former Chair of the Swiss National Bank, has been put forward as a candidate.
  • Ma. Fatima D. Francisco has also been nominated.

The proposals were disclosed in an ad‑hoc announcement pursuant to Article 53 of the Swiss Code of Obligations (Art. 53 LR) and were subsequently reported by multiple German‑language financial outlets (e.g., wallstreet-online.de, finanznachrichten.de). The board restructuring is part of a broader governance update that includes a reshuffling of governing committees, as noted by Marketscreener and other sources.

JPMorgan’s Neutral Rating and Target Price

U.S. investment bank JPMorgan has maintained a “Neutral” rating for Nestlé SA. The bank’s target price for the stock remains at CHF 90. This assessment was reiterated across several German financial news sites (wallstreet-online.de, ad‑hoc‑news.de, finanznachrichten.de). The rating reflects JPMorgan’s view that the company’s recent strategic moves—particularly the potential divestiture from the ice‑cream sector and the board changes—do not materially alter its long‑term prospects.

Product Innovation – Prebiotic Sparkling Water

Nestlé USA has expanded its beverage portfolio by adding a prebiotic sparkling water to its lineup. The new product contains six grams of fiber per serving, aligning with growing consumer demand for functional beverages.

Baby Formula Recall Scrutiny

Nestlé, together with Danone, is under investor pressure to disclose the financial impact of its largest infant formula recalls to date. Reuters reported that both companies face scrutiny over the handling of these recalls and are expected to demonstrate lessons learned from the crises that adversely affected their shares and harmed consumer trust.

Market Context

  • Share Price (2026‑02‑16): CHF 79.02
  • 52‑Week High: CHF 91.72 (2025‑03‑23)
  • 52‑Week Low: CHF 69.9 (2025‑08‑03)
  • Market Capitalisation: CHF 203 295 932 416
  • Price‑Earnings Ratio: 19.97

These figures provide a backdrop for assessing the impact of the announced strategic and governance changes on shareholder value.