- Despite strong comps, Danone's portfolio shows its fundamental value as more activist strategies are yet to take hold.
- The water portfolio did surprisingly well, increasing the chances of an eventual P/E buyout as the risk becomes demonstrably lessened for private investor appetite.
- Danone management has started to talk about inflation, and we should start taking it very seriously. However, Danone has means to combat it.
- Overall, we continue to see power in the Danone portfolio, and think it's only a matter of time before we see some important catalysts, helped along by activist influence.
For further details see:
Danone Continues To Demonstrate Portfolio Quality Against Difficult Comps