Danone: Oddo maintains rating and target price
(CercleFinance.com) - Danone has announced that it is postponing its AGM that was scheduled for 28 April, as well as the payment of its dividend, due to the exceptional circumstances resulting from the Covid-19 pandemic.
The group's statement specifies that in all cases, its AGM will be held by 30 June.
Following this announcement, Oddo confirms its Reduce rating on the share, along with its target price of 65 euros.
It is not stipulated that the payment of the dividend will take place in all circumstances - indeed, it is difficult to determine whether this omission is intentional. However, it could be because of the political consensus that increasingly suggests that no payments of dividends should be made in 2020 by companies that are domiciled in France, the broker says.
Remember that Danone, like other companies that monitored, does not, in our opinion, have any liquidity problem, even when assuming a 15% drop in the operational FCF in 2020, analysts add.
Copyright (c) 2020 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 group's statement specifies that in all cases, its AGM will be held by 30 June.
Following this announcement, Oddo confirms its Reduce rating on the share, along with its target price of 65 euros.
It is not stipulated that the payment of the dividend will take place in all circumstances - indeed, it is difficult to determine whether this omission is intentional. However, it could be because of the political consensus that increasingly suggests that no payments of dividends should be made in 2020 by companies that are domiciled in France, the broker says.
Remember that Danone, like other companies that monitored, does not, in our opinion, have any liquidity problem, even when assuming a 15% drop in the operational FCF in 2020, analysts add.
Copyright (c) 2020 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.