Danone: Oddo's earnings estimates

(CercleFinance.com) - Oddo has confirmed its buy rating on the Danone share, along with its target price of 88 euros.


The broker expects Q3 earnings growth of 4.2%, with volumes up 0.9% and a +3.3% price-mix effect.

Oddo anticipates organic growth of 9% in specialised Nutrition, including 10% in baby milk, with 30% growth in China.

In Waters, Oddo has adjusted its forecast to +1% in Q3 (vs. +2.8% previously) and on EDP, analysts expect +2.8% (vs. +3% previously). The broker maintains its organic growth forecast for 2019 at +2.9%.

Oddo is raising its 2019 and 2020 EPS estimates by +1.6% and +2%, mainly due to a reduction in the corporate tax rate. However, it is pretty much sticking to its operating profit forecasts, with organic growth of 2.9% and 4.2% over 2019 and 2020 and respective underlying operating margins of 15.2% and 16%.


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