Danone: SG raises target price to 78 euros.
(CercleFinance.com) - Société Générale (SG) analysts have become more positive towards the Danone share.
In their opinion, organic growth of sales should pick up at the end of the year. As such, they are maintaining their buy rating on the stock, upping their 12-month target price from 75 euros to 78 euros.
The French agri-food giant is currently struggling: Q2 like-for-like sales growth is expected to be as disappointing as in Q1 (+0.5%, SG estimates).
Indeed, the market for fresh dairy products "remains challenged," SG says, and Danone management has yet to convince that yogurts are not becoming “standardised”. The group must also prove that its product Activia can return to growth in Europe, while its recovery has failed. Moreover, Brazil remains "very challenging" and the US is slowing down.
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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.
In their opinion, organic growth of sales should pick up at the end of the year. As such, they are maintaining their buy rating on the stock, upping their 12-month target price from 75 euros to 78 euros.
The French agri-food giant is currently struggling: Q2 like-for-like sales growth is expected to be as disappointing as in Q1 (+0.5%, SG estimates).
Indeed, the market for fresh dairy products "remains challenged," SG says, and Danone management has yet to convince that yogurts are not becoming “standardised”. The group must also prove that its product Activia can return to growth in Europe, while its recovery has failed. Moreover, Brazil remains "very challenging" and the US is slowing down.
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.