Market Overview

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

Share:
Related DF
10 Notable Stocks Trading Ex-Dividend Thursday, August 18
Top Performing Industries For August 12, 2016

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
Feb 2016Deutsche BankMaintainsBuy
Feb 2016BB&T CapitalDowngradesBuyHold
Feb 2016Deutsche BankMaintainsHold

View More Analyst Ratings for DF
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Price Target Analyst Ratings

 

Related Articles (DF)

View Comments and Join the Discussion!