UPDATE: Deutsche Bank Raises PT on Dean Foods Co. on Food Stocks Rally
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
|Nov 2014||Stephens & Co.||Downgrades||Equalweight||Underweight|
|Oct 2014||BB&T Capital||Downgrades||Buy||Hold|
|Aug 2014||Credit Suisse||Upgrades||Neutral||Outperform|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.