Analyst David Hayes of Jefferies maintained a Sell rating on DANONE SA (0KFX – Research Report), retaining the price target of €61.00.
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David Hayes has given his Sell rating due to a combination of factors impacting DANONE SA’s performance. The company’s recent results show a shortfall in volume and mix across all divisions, which is concerning despite the impressive performance in China. This underperformance is somewhat mitigated by increased pricing in Latin America, but it is not enough to fully offset the challenges faced in other regions.
Furthermore, the North American market is beginning to show signs of a less favorable environment compared to the past two years, adding to the company’s difficulties. Although there are high expectations for DANONE, demonstrated by its high next twelve months price-to-earnings ratio, the current update does not seem sufficient to meet these aspirations. As a result, the outlook for the second quarter could see these challenges intensifying, justifying the Sell rating.
According to TipRanks, Hayes is ranked #3196 out of 9371 analysts.