Danone: Oddo cuts target price

(CercleFinance.com) - Oddo confirms its Reduce rating on the Danone share, adjusting its target price to 65 euros (just under 1 euro above its current price).


After further analysis of its 2019 results, the broker has now cut its EPS estimate by 6% for 2020, followed by almost 5% for 2021-2025.

The broker says that it has reduced its growth target for 2020, 2021 and beyond. IT has also cut its OM target to under 15% in 2020. Its estimates bring it to an OM of 15.3% in 2020, followed by 15.5% over 2021, 15.6% over 2022 and finally 15.8% over 2023, Oddo adds.

Unless there are any unpleasant surprises on FCF, this leaves the group with funding capacity of 3 billion to 6 billion euros by 2022 for acquisitions. Last but not least, management has said that the ROIC target (12% in 2020, then shifted to 2022) will be updated in June. According to its estimates, this should reach 11.9% in 2025, Oddo adds.


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