Danone: Société Générale raises target price to 80 euros.
(CercleFinance.com) - Maintaining its buy rating on the stock Société Générale (SG) has raised its 12-month target price from 75 euros to 80 euros (+6.
7%).
Analysts have hailed upbeat quarterly sales, as well as speculation about management of the French agri-food group.
SG highlights that Danone's organic growth has significantly exceeded the consensus in Q3, reaching 4.7%, against 2.8% expected. While the take-off of baby food in China has contributed a lot, pleasant surprises also came from other regions - for example, Europe, as well as from WhiteWave, a recent US acquisition that initially led to some skepticism from the market.
“We expect top-line momentum to build and think the group's 2020 targets of 4-5% OG and >16% EBIT margins look more credible,” SG's report says.
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.
7%).
Analysts have hailed upbeat quarterly sales, as well as speculation about management of the French agri-food group.
SG highlights that Danone's organic growth has significantly exceeded the consensus in Q3, reaching 4.7%, against 2.8% expected. While the take-off of baby food in China has contributed a lot, pleasant surprises also came from other regions - for example, Europe, as well as from WhiteWave, a recent US acquisition that initially led to some skepticism from the market.
“We expect top-line momentum to build and think the group's 2020 targets of 4-5% OG and >16% EBIT margins look more credible,” SG's report says.
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.