Danone: Barclays raises target price
(CercleFinance.com) - Barclays has reinstated its "overweight" recommendation on the Danone share, having raised its corresponding target price from 82 euros to 90 euros, saying that it is "increasingly convinced that Danone's top line inflection is sustainable".
"We expect much stronger volumes from here as its innovation efforts ramp up," the broker said, also noting that "its Dairy portfolio in France and Spain is in growth for the first time in seven years".
"Even if Danone's target of trebling plant-based sales to E5bn by 2025 might be a stretch, it at least demonstrates that it is in growth mode, and is increasing capex to fund its conviction," the broker adds.
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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.
"We expect much stronger volumes from here as its innovation efforts ramp up," the broker said, also noting that "its Dairy portfolio in France and Spain is in growth for the first time in seven years".
"Even if Danone's target of trebling plant-based sales to E5bn by 2025 might be a stretch, it at least demonstrates that it is in growth mode, and is increasing capex to fund its conviction," the broker adds.
Copyright (c) 2019 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.