Danone: Barclays sees no catalyst in immediate future
(CercleFinance.com) - On Thursday Barclays reiterated its "overweight" recommendation on the Danone share, along with its target price of 70 euros, ahead of the French agri-food group's Q3 sales next month.
While it acknowledges that the share is relatively cheap today, trading on the basis of a 2021 P/E of below 16x, the broker says it does not see any catalyst that is likely to satisfy the market in the immediate future.
"Comps will be incredibly easy in H1-21 and there should be a CMD in Q1-21, but until mgmt reassure that the 14% margin is the trough, it will likely tread water," the broker warns.
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