Danone: Morgan Stanley maintains 'overweight' rating

(CercleFinance.com) - Morgan Stanley reiterates its "overweight" rating on the Danone stock, along with its target price of 79 euros, saying that the stock's reaction - falling by 3%-to-4% - to third quarter results is "exaggerated".


"Weakness is driven by fears around a China Nutrition slowdown which is due to a high base of comparison and destocking in the indirect channel," the broker explains.

It adds that its "overweight" thesis is based on a turnaround at its EDP business (dairy and vegetable products; 53% of sales) "which these results confirm following sequential improvement across both EDP Intl. and EDP NORAM/Whitewave".



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