UPDATE: Goldman Sachs Downgrades Dean Foods Company to Neutral on Increased Risk of Dairy Inflation
Goldman Sachs reduced its rating on Dean Foods Company (NYSE: DF) from Buy to Neutral and reiterated its price target at $17.
Goldman Sachs commented, "We are removing DF from the Americas Buy List and lower our rating to Neutral. DF shares have been under pressure recently on concerns over higher corn prices driving higher milk costs. We lower our EPS estimates 2% in 2012 and 8% in 2013/2014 as we incorporate higher milk costs than previously forecast. We see increased risk to steeper inflation in the Class I mover as farmer income over feed costs is near trough levels and elevated grain prices could drive dairy cow herd reduction."
Dean Foods Company closed at $14.78 on Thursday.
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