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

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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
Mar 2017Morgan StanleyUpgradesNeutralOverweight
Feb 2017Vertical ResearchUpgradesHoldBuy
Jan 2017BernsteinDowngradesOutperformMarket Perform

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View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Price Target Analyst Ratings

 

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