Jefferies downgrades Danone and Nestle, expects 2025 to bring clarity to food & HPC
08/01/2025 10:26
** Jefferies says 2025 should provide more clarity into
growth prospects of the food and home and personal care (HPC)
sectors
** It downgrades Danone DANO.PA and Nestle NESN.S to
"underperform" from "hold", expecting food names to lead
derating across large caps
** It says growth rates will be dependent on portfolio
exposures to structural volume and mix runways, benefiting
cosmetics and consumer health, while weighing on traditional
category exposures in food and HPC
** It notes Nestle was the first to acknowledge a new
reality for sales growth and margin prospects when its CEO
provided a more realistic guidance in November, and warns other
CEOs may follow
** It expects underlying recovery rate of sales for Nestle
to be stalled for the next two years
** It expects Danone to deliver a sales disappointment and
margin miss in 2025, as key contributors to its growth falter
RATINGS:
COMPANY RATING
Beiersdorf BEIG.DE Buy
Haleon HLN.L Buy
L'Oreal OREP.PA Hold
Henkel HNKG.DE Hold
Reckitt RKT.L Hold
Danone DANO.PA Underperform
Nestle NESN.S Underperform
Unilever ULVR.L Underperform
(Reporting by Isabel Demetz)
((Isabel.demetz@thomsonreuters.com))