Legal decision harms Danone

HEALTH product producer Danone yesterday saw its share valuation downgraded by analyst Sanford C Bernstein.

Growth expectations for this year and the medium-term have been downgraded for the world’s largest yogurt maker, despite a strong stock performance in 2010.

It now carries a “market-perform” rating, down from “outperform”, due to risks facing its business.

Legal rulings recently blocked the promotion of health benefits on its products, including Actimel and Activia, which could hit performance.