Sell Rating Due to Market Performance and Valuation Concerns

Analyst David Hayes of Jefferies maintained a Sell rating on DANONE SA (0KFX – Research Report), retaining the price target of €56.00.

David Hayes has given his Sell rating due to a combination of factors including the uninspiring performance in key markets and valuation concerns. Although there was a slight improvement in organic sales growth in the US, the performance in European Dairy remained flat, which may not meet investor expectations.
Additionally, the company’s current price-to-earnings ratio appears high relative to the lack of significant margin improvements or strategic initiatives, such as share buybacks, which could have positively influenced investor sentiment. The absence of a clear margin commitment further adds to the uncertainty, leaving consensus estimates largely unchanged.