(CercleFinance.com) – Danone gained nearly 2% on Wednesday on the Paris market, to its highest level in six months, following encouraging comments from Morgan Stanley which saw the agri-food group once again growing its results.
Around 4:20 p.m., the stock advanced 1.9%, signing one of the best performances on the CAC 40 index, bringing its gains since the start of the year to 17%.
Morgan Stanley, which had moved to an ‘underweight’ advice at the start of the year in view of a ‘transition’ exercise, raised its advice to ‘overweight’, with a new price target of 62 euros showing an upside potential of 11%.
The analyst believes that the ‘Renew Danone’ restructuring plan is starting to bear fruit, but also that the group is under less pressure than its competitors linked to the use of GLP-1 agonists in the fight against ‘obesity.
He even thinks that his products, particularly in mineral waters, could benefit from the trend towards well-being and the aging of the population.
All these elements suggest an improvement in the group’s performance and its cash generation, concludes Morgan Stanley, but which are not reflected in the current valuation of the stock, he underlines.
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