Danone: Bryan Garnier still a buyer after sales released
(CercleFinance.com) - Bryan, Garnier & Co.
has hailed Danone's quarterly results, released this morning, as full of positive elements. Maintaining their buy rating on the stock, analysts also confirm their target price of 81 euros, which represents upside potential of 20%. Up almost 3% so far today, the Danone share currently leads the CAC 40 index.
Admittedly, reaching 6.08 billion euros as reported, the French group's Q1 sales missed the consensus by several tens of millions of euros, mainly due to negative currency effects.
However, organic growth came as a pleasant surprise, reaching 4.9%, against the consensus' forecast of just 3.9% (and Bryan Garnier's estimate of 4.1%). Explanations for this include Specialised Nutrition (29% of sales), which is still very dynamic, Waters (18%) and EDP International (33%).
Bryan Garnier still believes that Danone will deliver one of the best organic growths in its sector, through a portfolio that is focused on strong consumer demand for healthy products, as it mentions in its research report. This is particularly so, as expected synergies (with the integration of WhiteWave) should enable it, as announced by management, to improve the operating margin on a comparable basis by 300 basis points between 2016 and 2020.
Copyright (c) 2018 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.
has hailed Danone's quarterly results, released this morning, as full of positive elements. Maintaining their buy rating on the stock, analysts also confirm their target price of 81 euros, which represents upside potential of 20%. Up almost 3% so far today, the Danone share currently leads the CAC 40 index.
Admittedly, reaching 6.08 billion euros as reported, the French group's Q1 sales missed the consensus by several tens of millions of euros, mainly due to negative currency effects.
However, organic growth came as a pleasant surprise, reaching 4.9%, against the consensus' forecast of just 3.9% (and Bryan Garnier's estimate of 4.1%). Explanations for this include Specialised Nutrition (29% of sales), which is still very dynamic, Waters (18%) and EDP International (33%).
Bryan Garnier still believes that Danone will deliver one of the best organic growths in its sector, through a portfolio that is focused on strong consumer demand for healthy products, as it mentions in its research report. This is particularly so, as expected synergies (with the integration of WhiteWave) should enable it, as announced by management, to improve the operating margin on a comparable basis by 300 basis points between 2016 and 2020.
Copyright (c) 2018 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.