Goldman Sachs Has Buy on Dean Foods

Goldman Sachs is out with a research report on Dean Foods Company (NYSE: DF) and it has a Buy rating and a $14 price target on shares.

In a note to clients, Goldman Sachs writes, "We retain our Buy rating on DF shares after refining estimates to reflect weaker volume, partly offset by lower milk costs in 2012. In the near term, we see sentiment picking up as we are beginning to see raw milk costs subside and expect 2012 to be a deflationary year for raw milk prices. Over the longer term, we continue to believe that DF should see margin recovery as a more stable fundamental backdrop allows DF's sizable cost savings to flow through to the bottom line. Our 2011/2012/2013 EPS goes to $0.68/$0.93/$1.25 from $0.67/0.95/1.25."

Shares of DF gained 26 cents yesterday to close at $8.98.