Oct 19 - Shares in Nestle gain 3.7 percent to 45 Swiss francs, outperforming a 1.9 percent rise in the DJ STOXX European food and beverage index after UBS upgrades the stock to "buy" from "neutral" and increases its price target to 50 francs from 43 francs.
UBS says Nestle is benefitting from the rising stock of eye care subsidiary Alcon , which the world's biggest food group is selling to Swiss pharmaceuticals company Novartis .
The gaining Alcon share price, which has gained almost 6 percent in October, suggests the sale will be completed sooner rather than later, UBS says.