NESTLE (UP, TP CHF76.00): The basic message from CEO Schneider appears to be there was not a lot wrong with Nestle that some improved coordination, more aggressive resource allocation and clear accountability for delivering structural savings to the bottom line won't put right. As we had expected the margin target was not particularly stretching and the rationale was that Schneider does not want to compromise growth. Whilst this might disappoint those subscribing to Third Point's play book, we deem margins of c18% by 2020 as sensible and deliverable (notwithstanding the implied c70% retention rate on the structural savings).