Danone: Oddo confirms rating and TP
(CercleFinance.com) - Oddo confirms its reduce rating on the Danone share, maintaining its target price of 57 euros (about its current price).
The broker says that downside appears limited in the immediate future, given a 2021e P/E of 14x and the share's performance YTD (-23%) against European Food HPC peers.
Visibility is nevertheless significantly worse in H2, although above all in 2021. The risk of unpleasant surprises therefore remains high and the group's announcement of the departure of the CEO of the EDP International division is another factor, Oddo adds.
Indeed, the analyst believes that the departure of F. Camacho is not coming at a good moment for the group and represents an additional factor for disruption as the group draws up its plan to adapt to market conditions.
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