Danone: Jefferies downgrades and cuts TP

(CercleFinance.com) - Jefferies has downgraded Danone shares to Hold (from Buy), with a target price of E63 (from E70).


We have downgraded to Hold, as our previous rating was based on an acceleration of margin dynamics in 2025 and a uniform contribution to sales growth, the broker says.

Margin ambitions now appear constrained by the ongoing challenges of volume/mix acceleration in EDP and the risk of slower growth in higher-margin operations, Jefferies adds.

The analyst estimates that US coffee/cream, Chinese nutrition and water (about 19% of sales) contributed 50% of the group growth in H1 2024.

As these growth sectors are now more difficult, we are lowering our FY 2025 EPS by 6% and our TP by 10%, the broker says.


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