UPDATE: Stifel Raises PT on WhiteWave Foods on News of Acquisition of Earthbound Farms

In a report published Tuesday, Stifel analyst Christopher Growe reiterated a Buy rating on

, and raised the price target from $23.00 to $25.00. In the report, Stifel noted, “WhiteWave announced the acquisition of Earthbound Farms for $600 million yesterday providing an incremental growth contributor to its business and a nicely accretive one at that. WhiteWave now expects $0.07 in EPS accretion in the first full year and we believe this could prove conservative. We continue with our Buy rating on the shares, and given the expected incremental EBITDA from Earthbound Farm and continued strong conviction in the upside potential of the stock, we are increasing our target price to $25 which is based on a roughly 14x multiple considering an enterprise value that considers includes both the EBITDA of the new business (roughly $75 million) and the assumed debt with the transaction (roughly $600 million).” WhiteWave Foods Co. closed on Monday at $22.92.