Danone shares hit one-year low under pressure following the breakdown of €60.84
The food and beverage group is experiencing persistent selling pressure this Friday, in a context where the Paris market is already trending downward. The breach below a key technical threshold marks a new stage in the deterioration of the share price, which has accumulated losses over several weeks.
The support level breached during the session accentuates an already weakened technical configuration
Danone is declining 1.69% to €60.34 during the session, following an opening already in negative territory. The notable development this morning: the share has breached its support level at €60.84, and remains below this level (last price at €60.34). This downward breach is added to an already deteriorated configuration, since the share is trading below its three moving averages. The gap with the 20-day MA at €63.83 stands at -5.47%, that with the 50-day MA at €67.19 climbs to -10.19%, and that with the 200-day MA at €69.08 to -12.65%.
The RSI at 32 reflects marked selling pressure, without yet touching the extreme threshold of 30, but the momentum remains clearly bearish. The MACD displays a negative histogram (-0.21), in line with the underlying trend. Over the week, the share is down 2.3%, and has lost 7.51% over one month. For context, the CAC 40 is declining 0.69% during the session, but Danone is among the steepest declines in the index.
Free cash flow under pressure and rising debt weigh on fundamentals
The stock market deterioration is occurring in a nuanced fundamental environment. Upon publication of H1 2026 results on July 29, 2026, the group had confirmed its annual objectives, targeting comparable growth between +3% and +5%, and signaled a notable margin improvement in Waters (+196 basis points to 13.3%). However, two points of concern clearly stood out from these results: the free cash flow down 27.3% to €852 million in the first half, and net debt rising to €9.0 billion compared to €8.4 billion at the end of December 2025. A negative currency effect of -3.3% was also weighing on reported revenue.
These elements, combined with the expected completion in the second half of the acquisitions of the MADE group and Saputo Dairy Australia, paint a picture of cash flow under short-term pressure. Over one year, the share has declined 18.35%, representing one of the weakest performances in the index. The next identified resistance level is located at €68.22, or more than 12% above the current price.
