Danone gained nearly 0.5% in Paris on Monday, when Barclays renewed its "overweight" recommendation on the stock, with a price target of 70 euros representing a potential upside of over 28%.

In the analyst's view, the inflection point experienced by gross margin in the first half, which improved by 0.9 percentage points to 47.3%, shows that the food group's recovery trend remains intact.

Against this backdrop, Barclays expects a continued recovery in sales volumes and, perhaps more decisively, an even more convincing performance in Essential Dairy Products (EDP) in the second half.

"We believe there continues to be a significant opportunity in terms of value creation and return on capital employed (ROIC)", it concludes.

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