'Capacity to surprise' - Exane BNP Paribas ups Danone on markets' growth potential

Danone SA

04/03/2026 13:29

** Danone DANO.PA has a "capacity to surprise", Exane BNP Paribas says as it upgrades French food group to "outperform" from "neutral", citing its markets' growth and limited impact from recent headwinds

** The broker notes yoghurt industry has grown at an "exceptionally strong rate" of 8.3% in Europe and 12.2% in the U.S. YTD, adding the capacity constraints in the U.S. dairy market are progressively easing

** "Given consumers' desire for more protein and GLP-1s, this growth looks well-placed to continue," Exane says

** Exane sees no mid/long-term concern from recent infant formula recall

** It adds the decline in Chinese births is less scary than initially feared, noting a high-single-digit increase in maternal registrations in Q1 this year

** Out of 25 analysts covering Danone, 13 rate it "strong buy"/"buy," ​ten "hold" and two "strong sell"/"sell" - LSEG data

(Reporting by Zakarya Meliani in Gdansk)

((Zakarya.meliani@thomsonreuters.com))