Bank of America announced on Tuesday that it has resumed coverage of Danone shares with a Buy recommendation and a price target of 91 euros, implying a potential upside of 35%.
According to BofA analysts, Danone is expected to deliver operating profit growth exceeding that of its peers, driven by the strength of the French food group's two strategic pillars, which currently generate 40% of its profits: the U.S. yogurt market and the specialized nutrition segment in China.
Valuation seen as disconnected
The investment bank believes that the stock's current valuation does not reflect these growth prospects. The shares are currently trading at enterprise value to operating profit (EV/EBIT) multiples for 2026 similar to those of the rest of the sector, which, in its view, fails to capture the expected operational outperformance.
Danone is one the world leading food-processing groups. Net sales break down by family of products as follows:
- dairy products and plant products (48.2%; No. 1 worldwide): fresh fermented milk products, creams, products and drinks of plant origin (based in particular on soya, almond, hazelnut, rice, oats and coconut);
- specialized nutrition products (34%): baby foods (No. 2 worldwide; foods for infants and young children in addition to breastfeeding) and medical nutrition products (foods for people suffering from certain pathologies or people weakened by age);
- bottled water (17.8%; No. 2 worldwide): natural water, aromatized water or enriched in vitamins (brands Evian, Volvic, Badoit, Aqua, etc.).
At the end of 2025, the group had more than 180 production sites throughout the world.
Net sales are distributed geographically as follows: Europe (35.8%), North America (23.2%), China/North Asia/Oceania (14.5%), Asia/Middle East/Africa (16.3%) and Latin America (10.2%).
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