Danone: Credit Suisse still a buyer
(CercleFinance.com) - Credit Suisse reinstates its son opinion "outperform" rating on the Danone share, along with its target price of 69 euros, while cutting its 2020-21 EPS estimates by 3%, integrating a more unfavourable impact of the group's product mix and FX factors.
Its new estimates also consider a reduction in its organic sales growth forecast (cut from +1.9% to +1% for 2020, followed by a cut from +3.7% to +3.5% pour 2021, "as a result of a protracted lockdowns, particularly in emerging markets, and expecting a more gradual return to normality".
However, Credit Suisse notes that, on its estimates, Danone is trading at 17 times expected 2021e EPS, which it believes, "fails to refect the quality of Danone's Specialized Nutrition business (52% of group profits)".
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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.
Its new estimates also consider a reduction in its organic sales growth forecast (cut from +1.9% to +1% for 2020, followed by a cut from +3.7% to +3.5% pour 2021, "as a result of a protracted lockdowns, particularly in emerging markets, and expecting a more gradual return to normality".
However, Credit Suisse notes that, on its estimates, Danone is trading at 17 times expected 2021e EPS, which it believes, "fails to refect the quality of Danone's Specialized Nutrition business (52% of group profits)".
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.