Danone shares rise in Paris, buoyed by J.P. Morgan’s optimism and the confirmation of targets
The investment firm has added it to its ‘Positive Catalyst Watch’ list, which includes companies offering the best short-term risk-reward ratio
(Il Sole 24 Ore Radiocor)- Danone is in the spotlight on the Paris Stock Exchange following the confirmation of its 2026 targets and, above all, due to the optimism expressed by JP Morgan analysts. The investment bank has added Danone to its “Positive Catalyst Watch” list, which includes companies offering the best short-term risk-reward ratio. Analysts at the US bank continue to regard the stock as a buy opportunity with an unchanged price target of 90 euros. JPM expects the group’s third-quarter revenues, due to be published on 28 October, to reassure investors. Given that Danone shares have been among the worst performers in the European consumer goods sector since the start of the year, analysts expect a positive reaction to the report. The bank forecasts organic growth of 3.6 per cent for the third quarter, comprising a price effect of 2.6 per cent and a volume/mix effect of 0.9 per cent. Meanwhile, ahead of the publication of its third-quarter results, Danone has released its preparatory document (‘aide-mémoire’) for analysts, in which it reaffirms its strategic ambitions, with its 2026 targets remaining unchanged.
The group is still targeting sales growth of between 3% and 5% on a like-for-like basis, as well as an increase in current operating profit that outpaces that of turnover. In the first half of the year, sales rose by 3.5 per cent on a like-for-like basis, accelerating to 4.2 per cent in the second quarter, compared with 2.7 per cent in the first.
