DANONE S.A

Real-time - 01/15 11:37:03 am
53.62EUR	+1.32%

Danone : A new move to the downside is expected

	Patrick Rejaunier
	Senior Analyst

Strategy published on : 01/14/2020 | 03:39

short sell

Stop-loss triggered

Entry price : 70.92€
Target : 66€
Stop-loss : 72.5€
Potential : 6.94%

Sellers are regaining the upper hand for stocks in Danone while trading volume and volatility has picked up.
Investors should open a short trade and target the € 66.

Summary

● The company has solid fundamentals for a short-term investment strategy.

Strengths

● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 71.96 support.

● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.

● Analysts covering this company mostly recommend stock overweighting or purchase.

Weaknesses

● The group shows a rather high level of debt in proportion to its EBITDA.

2d ago	DANONE : Bernstein remains a Sell rating
3d ago	DANONE : Receives a Sell rating from UBS
3d ago	DANONE : JP Morgan reiterates its Neutral rating
3d ago	DANONE : Goldman Sachs gives a Neutral rating
7d ago	DANONE : JP Morgan reaffirms its Neutral rating