28 Jun 2018
- Across our global consumer defensive coverage universe, valuations have continued to languish, trading at a 5% discount to our fair value estimates on a market-cap-weighted basis.
- Despite a focus on extracting costs, top-line acceleration has remained elusive across the sector.
- As a result, M&A again took center stage, including Nestle's (NESN) purchase of Starbucks' (SBUX) consumer products range, Procter & Gamble's (PG) acquisition of German-based Merck's (MRK) consumer healthcare brands, and Walmart's (WMT) tie-up with Flipkart (following the sale of its Asda business to Sainsbury (SBRY)).
- Further, this tepid growth has piqued activist investor interest.
Erin Lash, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.