Danone: Morgan Stanley upgrades stock

(CercleFinance.com) - Danone shares are up 2% today, after a similar rise yesterday in Paris, reaching its highest level for six months, following encouraging comments from Morgan Stanley, which sees the food group growing its results further.


Morgan Stanley, which had downgraded to "underweight" at the start of the year, given a "transitional" year, has now upgraded the stock to "overweight", with a new target price of E62, giving upside potential of 11%.

The analyst believes that the "Renew Danone" restructuring plan is beginning to bear fruit.

It even believes that its products - particularly in mineral waters - could benefit from the trend towards wellness and an ageing population.

Morgan Stanley concludes that all these factors suggest that there will be improvements in the group's performance and cash generation, while these are not currently priced in.


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