Morgan Stanley upgraded Danone (DANOY) to Overweight from Equal Weight with a price target of $17.50, up from $13.70. Danone’s valuation discount to Nestle is unwarranted given its relatively more attractive setup, the analyst tells investors in a research note. The firm says food Producers “should catch tailwinds from a rotation into defensives,” and notes Danone is now its clear preference.” While fading consumer sentiment and spending may drive a rotation from out-of-home to at-home consumption, European Food Producers are insulated, contends Morgan Stanley.
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