Danone price target raised to EUR 66 from EUR 63 at Jefferies

Jefferies analyst David Hayes raised the firm’s price target on Danone (DANOY) to EUR 66 from EUR 63 and keeps a Hold rating on the shares. The firm believes there was enough in last week’s Q3 results to keep faith in FY24 delivery. Key growth areas continued to perform, led by U.S. EDP and China SN. But Jefferies sees specific challenges for the growth sustainability into 2025 for U.S. Creamers and China infant formula. The Europe miss in Q3, and associated negative pricing, could also indicate the need for heightened investment, the firm adds, noting that hopes of midterm accelerated sales, or year-over-year margin progression may need to be contained.