DAVY VIEW

Confidence in Danone’s operating model and growth algorithm has strengthened following a year of strong execution and record productivity. Margin delivery supports continued reinvestment, now set to normalise at a more selective level, providing a clearer path for expansion. Positioned in structurally growing categories such as high-protein and medical nutrition, Danone continues to drive relative volume outperformance in a challenging market. Despite its improving fundamentals, we believe its valuation still lags its strategic ambition and competitive positioning. We raise our price target to €77.5 and upgrade our rating to ‘Outperform’.