Danone Shares Bounce to €62.22 on Support, Yet Down -14% Over 3 Months
The stock of the agribusiness giant increased by 1.27% to €62.22 on Thursday afternoon in a rising Paris market. The rebound follows a significant decline that brought the price down to the support level of €61.44. However, the technical setup remains weakened in the medium term.
A Technical Rebound at the Support Level of €61.44 in a CAC 40 Up by 0.8%
Danone's stock rose by 1.27% to €62.22 in mid-afternoon trading, within a CAC 40 that advanced by 0.8% to 8,071.65 points. The stock ranks among the top gainers of the index, while Stellantis, STMicroelectronics, and LVMH lead the session.
The rebound was triggered at the support of €61.44, which also corresponds to the lower boundary of the Bollinger Bands at €61.20. The RSI at 30 indicates seller exhaustion after the decline of the past weeks. However, the price remains significantly below the MM200 (€72.69), with a gap of 14.40%, confirming the underlying pressure. Today's rise mitigates (but does not erase) the weekly decline of 4.16%.
Stock Market Dynamics Remain Fragile After April's Disappointment and Infant Milk Recall
Today's movement is part of a bearish sequence that began at the end of April. The stock had erased its post-earnings gains and lost nearly 14% over three months. The annual performance shows a decline of 12.76%.
As a reminder, the group had published on April 22 a quarterly revenue of 6,708 million euros, with an organic growth of 2.7%, despite the recall of infant milks and an unfavorable exchange rate effect of 5.6%. The market initially welcomed the publication before the stock fell. Institutional capitalization remains high, with 55.8% of the capital held by funds, including Artisan Partners, Vanguard, and Dodge & Cox. The next key event is the publication of the first half 2026 results, scheduled for July 29.
