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UPDATE: Deutsche Bank Raises PT on Dean Foods Co. on Food Stocks Rally

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UPDATE: Credit Suisse Downgrades Dean Foods On Valuation
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Comparing The 2 Largest Dairy Products Companies (Seeking Alpha)

In a report published Wednesday, Deutsche Bank analyst Eric Katzman reiterated a Buy rating on Dean Foods Co. (NYSE: DF), and slightly raised the price target from $21.00 to $22.00.

In the report, Katzman noted, “Food stocks have rallied dramatically YTD. While fundamentals are stabilizing after a tough 2012, it is hard to justify the multiple jump (+18% YTD). We see 2 reasonable explanations: (1) investors are assigning a lower WACC to food stocks along with more dividend tax rate clarity, and (2) the specter of widescale M&A as 3G uses the Heinz platform to make more deals while putting pressure on food companies to cut cost. We examine these issues here but are cautious on the group given its valuation.”

Dean Foods Co. closed on Tuesday at $18.16.

Latest Ratings for DF

DateFirmActionFromTo
Jan 2015Credit SuisseDowngradesOutperformNeutral
Jan 2015Credit SuisseDowngradesOutperformNeutral
Jan 2015Deutsche BankMaintainsHold

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Posted-In: Deutsche BankAnalyst Color Price Target Analyst Ratings

 

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