Danone Partnership Could Be a Game Changer for Argan (ENXTPA:ARG)

• Earlier this month, Danone and Argan announced the laying of the foundation stone for a new Aut0nom® logistics site in Sorigny, designed to double Danone’s logistics capacities in the Greater West of France and enable more efficient and local distribution of its dairy and plant-based products.
• This move, together with Argan’s reported rental income growth for the third quarter and nine months ended September 30, 2025, highlights Argan’s expanding role in facilitating large-scale, sustainable logistics infrastructure for leading food manufacturers.
• We’ll explore how Argan’s involvement in Danone’s major logistics expansion strengthens the company’s investment narrative and operational momentum.

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What Is Argan's Investment Narrative?

Being a shareholder in Argan means believing in the company’s ability to secure and expand key logistics partnerships, especially with major clients like Danone. The recent news of the foundation stone being laid for Danone’s logistics hub in Sorigny suggests a continued flow of contracted rental income and strengthens Argan’s case as a facilitator of large-scale sustainable infrastructure. This event reinforces the company’s growth narrative at a time when reported rental income has just shown a modest uptick and earnings guidance remains slightly higher than initially forecast. However, despite these positive catalysts, the biggest near-term risks still center on forecasts for declining earnings and revenue over the next three years, as well as concerns about reliance on one-off gains in recent results. The latest Danone project could temper these risks if translated into further deals, but its immediate earnings impact doesn’t appear material yet based on recent share price moves.

But bear in mind: consensus expects Argan’s earnings to trend lower despite this uptick. Argan's shares have been on the rise but are still potentially undervalued by 19%. Find out what it's worth.

Exploring Other Perspectives

Three separate fair value estimates from the Simply Wall St Community show a wide range, from €10.28 up to €80.33 per share. With opinions this varied, especially in light of muted near-term earnings growth, it’s clear that investor sentiment and expectations about future deals can play a pivotal role in Argan’s valuation. Explore these differing viewpoints to get a fuller sense of what could drive the stock’s direction.

Explore 3 other fair value estimates on Argan - why the stock might be worth as much as 24% more than the current price!

Build Your Own Argan Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Argan research is our analysis highlighting 5 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Argan research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Argan's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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