(News Bulletin 247) – Barclays on Monday renewed its ‘overweight’ recommendation and its target price of 70 euros on Danone, the latter representing an upside potential of more than 28%.
From the analyst’s point of view, the inflection point experienced by the gross margin in the first half, which improved by 0.9 percentage points to 47.3%, shows that the recovery trend of the food group remains whole.
Against this backdrop, Barclayd says it expects a further recovery in sales volumes and, perhaps most crucially, an even more compelling performance in Essential Dairy Products (EDP) in the second half.
“We believe there continues to be a significant opportunity in terms of value creation and return on invested capital (ROIC),” he concludes.
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