Danone: Bryan Garnier still a buyer; adjusts target price

(CercleFinance.com) - While trimming its fair value for the share from 82 euros to 81 euros, due to FX factors, broker Bryan Garnier has reinstated its "buy" rating on the Danone stock, deeming that the group's organic growth will improve from +2.
5% in 2017 to +2.9% in 2018.

This organic sales growth is expected to be driven by the agri-food group's water divisions (+4.7%) and specialised nutrition (+6%), while the EDP divisions (dairy and vegetable products) in North America (+1%) and internationally (+0.2%) are expected to report slower growth.

The broker also expects the group's operating margin to expand by 80 basis points on a comparable basis, reflecting savings in its Protein program and synergies stemming from the acquisition of WhiteWave.


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