Stifel maintains its Buy rating on Danone shares, with an unchanged target price of 72 euros.

The analyst believes that the share price has fallen by -2.5% due to the lack of clear guidance updates.

We believe that this reaction is exaggerated, and that the key point is the FCF target of 3 billion euros, which could imply better-than-expected growth in operating profit", the broker points out.

Stifel reports having attended Danone's Investor Day, as well as a tour of its R&D center the previous day, in Amsterdam, the Netherlands.

Overall, these two events have reinforced our positive view on the share, as we believe Danone is perfectly positioned to benefit from growing health awareness (EDP, water) as well as demographic trends (medical nutrition)', concludes the analyst.

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