Danone: Oddo still a buyer despite Morocco
(CercleFinance.com) - Oddo says that at the end of November, Danone's Moroccan subsidiary, Centrale Danone, announced that the losses for FY 2018 are expected to reach 500 million dirhams, or nearly 45 million euros, compared to a net profit of 115 million dirhams (10 million euros) in FY 2017.
In terms of losses, the group's comments suggest that the situation is getting a lot worse, as the annual loss of 45 million euros compares to a loss of just over 10 million euros in Q2, Oddo says.
Oddo maintains its buy rating on the stock. It says that the share's discount continues to widen, reaching a level of over 20% vs. European consumer staples peers (Food Beverage HPC). The broker says that the group's restructuring measures and cost savings offer sound visibility on EPS growth in 2019/20, after a rise of 40% between 2015 and 2018e.
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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 terms of losses, the group's comments suggest that the situation is getting a lot worse, as the annual loss of 45 million euros compares to a loss of just over 10 million euros in Q2, Oddo says.
Oddo maintains its buy rating on the stock. It says that the share's discount continues to widen, reaching a level of over 20% vs. European consumer staples peers (Food Beverage HPC). The broker says that the group's restructuring measures and cost savings offer sound visibility on EPS growth in 2019/20, after a rise of 40% between 2015 and 2018e.
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.