Danone: Credit Suisse downgrades stock

(CercleFinance.com) - Credit Suisse has downgraded its rating on the Danone stock to Neutral (from Outperform), having set a target price of 62 euros for it (current price: 58.
3 euros, pretty flat).

"The Danone share price has risen 10% over the past three months (vs European staples sector declining by 1%). In our view, a key driver of this outperformance has been increasing shareholder agitation for management change, culminating with the Board announcing that Chairman/CEO Faber has stepped down with immediate effect," Credit Suisse says.

The broker continues to see Specialized Nutrition (SN) as the jewel in Danone's portfolio, while pointing out that the growth rate of the infant nutrition category has slowed globally.

"In addition, whilst we expect some recovery in OOH consumption of bottled water, we think it will take several years for this division's profitability to return to pre-Covid levels," the analyst adds.


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