Danone: Bryan Garnier upgrades rating on stock.
(CercleFinance.com) - Bryan Garnier has upgraded its "neutral" rating on Danone to "buy" and has raised its fair value for the share from 69 euros to 77 euros, in a report on major European food groups.
It underlines that visibility has recently improved for the French group, and now expects a sharp 300-bp improvement in the group's operating margin, at constant exchange rates, over 2016-2020.
The broker says, “We continue to have doubts regarding the group's execution capabilities but, with a discount of 17% to its peers in terms of P/E 2018e and 12% in terms of EV/EBIT 2018e, we believe this risk is already factored into the share price.”
Copyright (c) 2017 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.
It underlines that visibility has recently improved for the French group, and now expects a sharp 300-bp improvement in the group's operating margin, at constant exchange rates, over 2016-2020.
The broker says, “We continue to have doubts regarding the group's execution capabilities but, with a discount of 17% to its peers in terms of P/E 2018e and 12% in terms of EV/EBIT 2018e, we believe this risk is already factored into the share price.”
Copyright (c) 2017 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.