Bank of America Maintains Buy and PO on Dean Foods
Bank of America reiterates its Buy rating and $13 price objective on Dean Foods Company (NYSE: DF), and updates EPS estimates on lower taxes and interest expense.
BofA commented, “We are raising our 2011 EPS estimate from $0.69 to $0.71 due to the outperformance in 3Q11, which implies 4Q11 EPS of $0.22, at the midpoint of managements $0.20-$0.25 range. We are forecasting 15% profit growth in WWAlpro, a lower tax rate, and a y/y decline in corporate expense to $43 mil (vs. $53 mil in 4Q10), to more than offset a modest decline in FDD-MS profits. Our 2012 EPS est. increases from $0.90 to $0.93 due to a higher operating profit forecast ($0.01 p/s), lower interest expense ($0.01 p/s) and a lower tax rate ($0.01 p/s)."
DF closed at $9.74 on Wednesday, down 7.06 percent.
