Danone: Oddo BHF still a buyer
(CercleFinance.com) - After a campaign on the British social networks following cases of intolerance to the new baby milk brand Aptamil, an analyst at Oddo BHF today said that he is still maintaining his buy rating on the Danone stock.
The health risk now seems to have been ruled out; as such, we are a long way off the Lactalis case of December 2017 (salmonella alert), however, in the world of consumer goods, and even more so in the case of baby food, the emotional dimension is extremely strong. The urgency is therefore to contain the risk of reputation. The measures taken by Danone seem adequate: establishment of a hotline open 24/7, intervention with pediatricians and pharmacists, in addition to social networks, Oddo BHF points out.
The broker notes that, while the reputational risk is significant for Danone, both the impact and the risk of contagion outside the UK appear limited. In addition, Oddo BHF confirms its target price of 85 euros for the share.
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.
The health risk now seems to have been ruled out; as such, we are a long way off the Lactalis case of December 2017 (salmonella alert), however, in the world of consumer goods, and even more so in the case of baby food, the emotional dimension is extremely strong. The urgency is therefore to contain the risk of reputation. The measures taken by Danone seem adequate: establishment of a hotline open 24/7, intervention with pediatricians and pharmacists, in addition to social networks, Oddo BHF points out.
The broker notes that, while the reputational risk is significant for Danone, both the impact and the risk of contagion outside the UK appear limited. In addition, Oddo BHF confirms its target price of 85 euros for the share.
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.