Danone: Jefferies raises target price

(CercleFinance.com) - Jefferies confirms its buy recommendation on the share after its earnings call.
Analysts also raise their target price by +3% to E70.

Last week's H1 results were sufficient to maintain confidence in Danone's prospects, the analyst says.

A price above Jefferies' estimates and the higher margin in China enable us to expect an operating margin of 13% for FY 2024, the analyst says.

Sales growth in the NORAM zone is encouraging, but needs to be watched closely. There has been a small sequential improvement, the analyst points out.

Margin expectations have been reinforced on the basis of 'moderate' indications. We believe that Danone is determined to reinvest as much as possible while posting some margin growth Jefferies adds.


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