UPDATE: Morgan Stanley Downgrades Dean Foods as Turnaround is Soured by Lower 2014 Outlook
In a report published Monday, Morgan Stanley analyst Matthew Grainger downgraded the rating on Dean Foods Co. (NYSE: DF) from Overweight to Equal-Weight, and lowered the price target from $22.00 to $20.00.
In the report, Morgan Stanley noted, “Downgrading DF to EW as we see downside to 2014 EPS; lowering our PT to $20. The combination of soft industry volumes, elevated milk prices, and higher opex will pressure EBIT growth and FCF. Though we are constructive on Dean's turnaround, we see few NT catalysts to drive a further re-rating.”
Dean Foods Co. closed on Friday at $18.43.
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