Danone: head above water, with broker comments
(CercleFinance.com) - The Danone share is managing to keep afloat in afternoon trading on Monday (up about +0.
4%), a mirror image of the CAC 40 (down about -0.4%), with supported by the broker Jefferies, which maintains its "hold" rating on the stock, while raising its target price from 67 euros to 72.5 euros, after the group's Q2 results outpaced its expectations.
"We continue to question Danone's ability to deliver the acceleration in growth and margin required next year to meet the 2020 targets," the broker says.
However, by then Jefferies expects the market to be more concentrated on a second half that is expected to post much stronger growth. For 2019, the broker has raised its organic sales growth forecast to 3%, while maintaining its margin estimate at 15.1%.
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