Cedric Norest, an analyst from Stifel Nicolaus, maintained the Buy rating on DANONE SA (0KFX – Research Report). The associated price target was raised to €78.00.
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Cedric Norest has given his Buy rating due to a combination of factors that highlight Danone SA’s potential for growth and stability. The company has demonstrated a solid start to the year with strong like-for-like sales performance, particularly in the first quarter of 2025. Despite some challenges in volume and mix, these were effectively counterbalanced by robust pricing strategies, indicating management’s adept handling of market conditions. The company’s focus on normalizing inflation and achieving volume/mix growth suggests a promising outlook for the upcoming quarters.
Moreover, Danone’s strategic initiatives, such as the turnaround of its Essential Dairy and Plant-based (EDP) segment in Europe, are beginning to show positive results. The introduction of new products has bolstered margins, reinforcing confidence in the company’s growth trajectory. Additionally, the decision to increase the price target to €78 reflects a lower weighted average cost of capital (WACC), which signifies a reduced risk profile for Danone. These factors collectively support Cedric Norest’s optimistic Buy rating for Danone SA’s stock.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a €85.00 price target.