(CercleFinance.com) – Oddo confirms its ‘outperformance’ rating on Danone, with a target lowered from 71 to 64 euros.
While the results for the 3rd quarter will be published at the end of October, the analysis office anticipates an increase in turnover of 13.6% (to 6,998 ME), driven by a currency effect of 6.7% and organic growth of 6.9%.
“The main message we took from a company contact is that T3 should not be very different from T2,” says Oddo.
‘We are positive because we are counting on a refocusing (of each business unit and then later of the group) which will make it possible to deploy the operational footprint (ranges, brands, channels, countries) in a more balanced and more agile way and thereby trigger a rerating movement’ continues the analyst.
Oddo also highlights a need for visibility on the part of investors, ‘not so much on the impact of the current economic situation on price-volume elasticity, but rather on the roadmap’ for the medium and long term.
To date, Danone has not given any indication of 2023, regrets Oddo. Consequently, ‘the continued tensions on milk prices, the need to strengthen operational capacities and the fragility of volumes lead us to be more cautious about the degree of recovery of the current MOP in 2023’.
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