DANONE SA, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst David Hayes from Jefferies maintained a Sell rating on the stock and has a €61.00 price target.
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David Hayes has given his Sell rating due to a combination of factors that suggest potential challenges for DANONE SA. Despite the company’s strong performance in China Nutrition, which has outpaced expectations and alleviated some concerns about competitiveness in this market, there are underlying issues that warrant caution. The company’s operations in Latin America, particularly in the Waters segment, are facing difficulties, which could impact overall performance.
Furthermore, while the first half margin delivery aligns with expectations and the outlook remains unchanged, there are looming competitive pressures in the China and US protein markets that could intensify in the second half of the year. These factors, combined with the mixed performance across different regions, contribute to a cautious outlook for DANONE SA, leading to the Sell rating by David Hayes.