Danone: Stifel still a buyer, adjusts target price
(CercleFinance.com) - Stifel reinstates its "buy" rating on Danone shares, while shaving one euro from its target price for them (lowered from 70 euros to 69 euros), in the wake of adjusted EPS estimates of +0.
6% for 2021, followed by -2.4% for 2022 and -2.8% for 2023.
"We believe surprisingly high LFL growth (+1.6%), market share gains and a relatively strong operating margin (13.1%) in H1-21 reduce cost inflation fears," the broker says.
Cost pressures in the second half of the year and expected reinvestments in the business make Stifel more cautious about margins, although it believes that the group's new CEO could unlock untapped value in Danone's portfolio.
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