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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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.