Jefferies announced on Monday that it has lowered its price target for Danone from 82 to 86 euros ahead of the group's first-quarter revenue release, scheduled for April 22.
In a research note published this morning, the U.S. broker stated it expects like-for-like growth of 2.2% for the first three months of the year, compared with a consensus estimate of 2.9%. For the full year 2026, the broker forecasts growth of 3.7%, versus average expectations of 3.9%, citing a slowdown in North American operations.
The broker further explained that it has reduced its 2026 profit margin estimate by 20 basis points due to a less favorable product mix.
However, Jefferies expects the stock to trade closer to a price-to-earnings (P/E) multiple of 19x in the near term, up from the current 17.5x, as commercial momentum improves in the United States. Consequently, the firm maintains its "Buy" rating on the stock.
In a separate note released this morning, Deutsche Bank also announced a reduction in its price target for the shares, moving from 66 to 65 euros.
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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