Deutsche Bank trims Danone price target, maintains Sell rating
Deutsche Bank announced on Tuesday that it has lowered its price target for Danone from 66 to 65 euros, while maintaining its "sell" recommendation on the stock due to a "multitude of issues" currently surrounding the French food giant.
In a note released this morning, the research firm indicated it has revised its like-for-like growth outlook to 3% for fiscal year 2026, with a forecast set at 2.4% for the first quarter. This adjustment stems from the impact of several headwinds, including infant formula recalls, exits from various European market segments, and the normalization of growth in China.
The analyst added that North American operations still show no growth, noting that Danone is losing market share in Greek yogurt despite an increasing reliance on promotional activity.
While online searches for protein products remain high overall, Deutsche Bank pointed out that queries for Danone's own Greek yogurt brands are trending downward. Meanwhile, competitors are ramping up production, a trajectory suggesting the segment is reaching maturity—a development that may not bode well for current market leaders.
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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