Jefferies confirms its buy recommendation on the share following the announcement of its results. Its price target has been raised by +3% to E70.

Last week's first-half results were sufficient to maintain confidence in Danone's prospects, according to the analyst.

'A price above Jefferies' estimates and the higher margin in China enable us to move to an operating margin of 13% for fiscal 2024', says the analyst.

'Sales growth in the NORAM zone is encouraging, but needs to be watched closely. There has been a small sequential improvement', the analyst points out.

'Margin expectations have been reinforced on the basis of 'moderate' indications. We believe that Danone is determined to reinvest as much as possible while posting some margin growth' adds Jefferies.

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