Danone: Oddo BHF still a seller - cuts target price
(CercleFinance.com) - On Monday morning an analyst at Oddo BHF confirmed a "reduce" rating on the Danone share, while cutting his corresponding target price from 60 euros to 57 euros.
This new target only suggests limited downside potential of aound 10%.
The broker now expects 2020 EPS to fall by 6.5% (vs. -4%), with a 15% fall in H1, followed by a 2% increase in H2. In addition to the 10% decline in Trading Operating Profit that it expects in H1, Mengniu's expected losses (1/2 of Danone result from equity affiliates) in H1 should weigh on the group's results. It expects 2021 EPS to recover, with growth of +9%. However, assumptions remain very fragile pending the "adaptation plan" that will be announced at the end of 2020, analysts explain.
Copyright (c) 2020 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.