Danone: amidst uncertainties, Oddo reduces target
(CercleFinance.com) - The group's management is working on an adaptation plan to be unveiled at the end of the year, or the beginning of 2021.
Against this backdrop, making forecasts for the next financial year is tricky, says Oddo, underlining that there is broad consensus as to the weakness of the share's valuation.
Citing Challenge magazine, Oddo also puts forward that Cécile Cabanis, the group's number 2, may leave. Whilst this retirement could be perceived positively by certain investors, questions arise as to the effectiveness of the future adaptation plan when the manager of Essential Dairy and Plant-Based (EDP) International already jumped ship at the beginning of September, considers the analyst.
Faced with the rising uncertainties, Oddo maintains its 'Reduce' recommendation and decreases the target price to 50 euros, compared to 57 euros previously.
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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.
Against this backdrop, making forecasts for the next financial year is tricky, says Oddo, underlining that there is broad consensus as to the weakness of the share's valuation.
Citing Challenge magazine, Oddo also puts forward that Cécile Cabanis, the group's number 2, may leave. Whilst this retirement could be perceived positively by certain investors, questions arise as to the effectiveness of the future adaptation plan when the manager of Essential Dairy and Plant-Based (EDP) International already jumped ship at the beginning of September, considers the analyst.
Faced with the rising uncertainties, Oddo maintains its 'Reduce' recommendation and decreases the target price to 50 euros, compared to 57 euros previously.
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.