Morningstar - Danone S.A. ADS (DANOY) Weakness in Dairy Takes the Gloss Off Another Strong Performance in Formula for Danone in 2Q

Report

Morningstar

Philip Gorham

EUR 100.00 For Business Accounts Only

Weakness in Dairy Takes the Gloss Off Another Strong Performance in Formula for Danone in 2Q

Our second-quarter revenue estimates proved too optimistic for Danone, as weakness in the international dairy business and unfavourable currency weighed on the firm's performance. On the other hand, the baby food business was again very strong. We reiterate our EUR 71 fair value estimate and narrow economic moat rating, and we think there is limited upside to Danone from these levels.
Danone's second-quarter organic growth rate of 3.3% is a sequential slowdown from the 4.9% posted in a particula...

30/07/2018 14 EN

Underlying

Danone S.A. ADS

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US23636T1007 Pink OTC Markets France

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Philip Gorham

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Weakness in Dairy Takes the Gloss Off Another Strong Performance in Formula for Danone in 2Q

Danone Reports Broadly in Line 2Q Results, Maintains Guidance; Shares Fairly Valued

Morningstar | Danone's Narrow Moat Should Facilitate the Achievement of its Midterm Targets

Danone's Narrow Moat Should Facilitate the Achievement of its Midterm Targets

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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