UPDATE: Credit Suisse Upgrades Dean Foods Company to Outperform; Poised for Re-Valuation

Credit Suisse upgraded Dean Foods Company DF from Neutral to Outperform and raised the price target from $18.00 to $21.00. Credit Suisse commented, "After meeting with the management of Dean Foods and WhiteWave over the past week, we believe that the market is under-valuing the stub of Dean Foods leading up to the distribution of WhiteWave shares. We are upgrading Dean Foods to Outperform (from Neutral) and raising our 12-month target price to $21/share (from $18) to reflect a 5.5x EV/EBITDA multiple for the Dean stub and a conservative value of $17/share for WhiteWave. While we think the near-term upside to the shares is compelling, we still harbor concerns longer term about Dean given the persistent overcapacity in the dairy processing industry, declining per capita volume trends, and what appears to be declining negotiating power with certain retail customers." Dean Foods Company closed at $16.91 on Tuesday.