Danone: Oddo downgrades stock
(CercleFinance.com) - Danone has said that it is now looking for FY 2019 sales growth of between 2.
5% and 3% on a comparable basis (previously around 3%), with an underlying operating margin of over 15% (unchanged).
Following the group's sales warning, Oddo has downgraded its rating on the share from buy to neutral, with a target price of 88 euros.
The agri-food group announced Q3 sales of 6.4 billion euros, up 3.7% as reported and up 3% like-for-like. The consensus was expecting 3.8% and Oddo was looking for 4.2%.
Oddo points out that Specialised Nutrition is performing even better than expected, although numbers for Danone's Waters and Dairy businesses are much lower.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.