Update shared on 11 Nov 2025
Fair value Increased 2.46%Danone's analyst price target has increased from €76.88 to €78.77. Analysts cite ongoing improvements in profit margin and optimism about portfolio momentum.
Analyst Commentary
Recent analyst reports reflect an evolving view on Danone's outlook, highlighting both ongoing improvements and areas warranting further attention. The adjustments in price targets and ratings signal shifting confidence in Danone's strategic execution and market potential.
Bullish Takeaways
- Bullish analysts are becoming more confident in Danone's portfolio progress, noting that certain segments such as protein dairy and China Specialized Nutrition are outperforming expectations.
- Raised price targets from several research firms indicate optimism that the company's renewed focus on core categories is translating into a more sustainable pace of growth.
- Upgrades in ratings reflect improved sentiment around the company's ability to execute on its turnaround strategy, especially as concerns persist but are less significant in key areas.
- Recent upward revisions suggest analysts expect profit margins and operational efficiency to continue trending positively in the upcoming quarters, supporting higher valuations.
Bearish Takeaways
- Bearish analysts are still cautious about long-standing challenges, particularly in the US creamers market, which continues to underperform and dampen overall momentum.
- Despite recent upgrades, there are concerns around whether accelerated growth rates in specialized nutrition can be sustained over the mid-term, potentially limiting upside.
- Some research voices maintain only modest target increases, indicating ongoing uncertainty regarding the speed and effectiveness of Danone's broader transformation efforts.
- Valuation remains a central debate, with some analysts maintaining neutral stances as the share price reflects a balanced risk-reward scenario given current execution progress.
What's in the News
- Danone confirmed its 2025 sales guidance, expecting like-for-like sales growth between 3% and 5%, and recurring operating income to increase at a faster pace than sales (Key Developments).
- Construction has begun on a new Aut0nom® logistics site in Sorigny, France, a development in partnership with ARGAN. This project will double Danone's logistics capacities in the Greater West of France and will feature increased use of green, self-produced energy (Key Developments).
Valuation Changes
- The consensus analyst price target has risen slightly from €76.88 to €78.77.
- The discount rate increased from 5.98% to 6.18%.
- Revenue growth expectations have edged down from 3.16% to 3.05%.
- The net profit margin has improved from 9.26% to 9.31%.
- The future P/E has ticked up from 21.11x to 21.71x.
Disclaimer
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