Danone: Up after two positive analyzes

(CercleFinance.com) – The stock ended the day in the green, benefiting from the publication of several positive analyses.

Stifel reaffirms its ‘buy’ recommendation on Danone with an adjusted price target of 70 to 72 euros, after the agri-food group’s announcement of organic growth which remained strong in the first quarter.

‘The EDP division should rebound while the brand’s dynamics are still unfolding and the upcoming investor day should provide an additional trigger for action, in our opinion,’ believes the broker.

Stifel also sees a possible increase in objectives by Danone on the occasion of its investor day planned for June, or on the occasion of the publication of its results for the first half of 2024.

UBS also confirms its purchase advice on the stock with an unchanged price target of E72, which represents an upside potential of 22% after the announcement of turnover for the 1st quarter of 2024.

The group achieved a turnover of 6.79 billion euros, down 2.5% due to highly negative scope (-5%) and currency (-3.2%) effects.

‘ A strong and widespread performance in the first quarter, demonstrating the group’s progress and signaling further improvement in the coming quarters. The path is clear towards operational EBIT growth of +7%’ indicates UBS.

‘Danone made a strong impression in the first quarter, with an improvement in the gross operating margin (LFL) thanks to a better volume/mix and an increase in prices’ adds the analysis office.

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