UPDATE: Deutsche Bank Reiterates on Dean Foods Following Disappointing 3Q13 Results, Upcoming Positive Catalysts

In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Dean Foods DF, but lowered the price target from $25.00 to $23.00. In the report, Deutsche Bank noted, “The market was disappointed with 3Q13 and the 8% stock drop seems reasonable with $0.10 lower guidance. Although volumes and high dairy cost are 2014 concerns, we expect sequential share gains and cost savings to boost EBIT. Assuming Dean is proactive with returning FCF to shareholders, we see valuation (2014: 6.2x EBITDA, 0.3x Sales) as too pessimistic.” Dean Foods closed on Tuesday at $18.20.