Danone: Oddo maintains rating after board decision
(CercleFinance.com) - Oddo believes that last night's decision by Danone's board of directors to keep Emmanuel Faber as Chairman and CEO until a new CEO can be found is unsurprising, although it could disappoint investors who were expecting a major upheaval.
Regarding Emmanuel Faber's proposal, the dissociation of the roles of Chairman and CEO will take effect when a new CEO takes office, the analyst says.
The choice of stability appears to be appropriate in the current context. After a complicated year in 2020 and four months of uncertainty surrounding the future of top management, the group needs stability, analysts add.
Oddo confirms its Underperform rating on the stock, with a target price of 50 euros (13% downside potential).
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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.
Regarding Emmanuel Faber's proposal, the dissociation of the roles of Chairman and CEO will take effect when a new CEO takes office, the analyst says.
The choice of stability appears to be appropriate in the current context. After a complicated year in 2020 and four months of uncertainty surrounding the future of top management, the group needs stability, analysts add.
Oddo confirms its Underperform rating on the stock, with a target price of 50 euros (13% downside potential).
Copyright (c) 2021 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.