Danone Shares Bounce 2% Mid-Session Despite Target Revisions

Significant Adjustments by Investment Banks

Investment banks have made significant adjustments to their price targets on Danone at the end of January. Morgan Stanley lowered its target from 87 to 75 euros on January 29, while maintaining an 'overweight' recommendation. This new target suggests a potential upside of 6.6% from the current price. Three days earlier, Oddo BHF also adjusted its valuation, lowering its target from 84 to 79 euros, with an 'outperform' advice. This second estimate suggests a potential appreciation of 12.3% from current levels. These revisions come in a context of increased caution about the outlook for the food sector, facing persistent inflationary pressures and sluggish European consumption.

Technical Analysis Shows Mixed Signals

The technical analysis of the stock shows contradictory signals but generally points towards stabilization. The RSI at 26 indicates a pronounced oversold zone, suggesting a potential for a short-term technical rebound. This historically low level implies that selling pressure might ease. Moreover, the price is currently below its 50-day (74.78 euros) and 200-day (73.72 euros) moving averages, confirming the downward trend observed over the past three months with a decline of 8.24%. The next support is at 65.84 euros, while the resistance to overcome is set at 78.26 euros. The presentation of the annual results for 2025 is expected on February 20th, an event that should provide clarifications on the French group's trajectory and possibly catalyze an exit from this consolidation phase.