Danone: RBC, less sceptical; upgrades stock.
(CercleFinance.com) - RBC Capital Markets has upgraded its rating on Danone from "underperform" to "sector perform" and has raised its target price from 59 euros to 65 euros, citing less scepticism on the stock.
"While we are sceptical of the quality and sustainability of third-quarter's very strong sales performance, the fact is that Danone's highest-margin business is performing better than we expected," the broker said.
"We no longer feel strong negative conviction," RBC added.
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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.
"While we are sceptical of the quality and sustainability of third-quarter's very strong sales performance, the fact is that Danone's highest-margin business is performing better than we expected," the broker said.
"We no longer feel strong negative conviction," RBC added.
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.