Danone shares fall as Morgan Stanley lowers its recommendation

(CercleFinance.com) - On Friday, Danone shares were one of the biggest decliners in the CAC 40 index on the Paris Bourse, as Morgan Stanley lowered its recommendation on the stock from "overweight" to "weight in line", with a target price of 71 euros.


In a note entitled 'Time for a break', the financial intermediary acknowledges that the stock remains a key play on the healthy eating theme, since 90% of the French food group's portfolio is made up of products such as yoghurts, plant-based drinks and medical nutrition.

While he still sees upside potential in the dossier, the analyst also believes that the share price is now well valued, having benefited from a 20% relative revaluation since the presentation of its new strategy.

Despite its exposure to attractive markets and a turnaround set to continue, the stock now looks well valued on the basis of a PER 2025 of 17x, believes Morgan Stanley.

At around 3.40 pm, Danone lost almost 1%, while the CAC advanced by 0.2%. The stock still has a year-to-date gain of over 10%.

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