UPDATE: Credit Suisse Upgrades Dean Foods Company In Anticipation Of Falling Dairy Prices

In a report published Tuesday, Credit Suisse analyst Robert Moskow upgraded the rating on

from Neutral to Outperform, and raised the price target from $15.00 to $18.00. In the report, Credit Suisse noted, “Dean Foods's 2Q was about as bad as anyone could possibly predict with an adjusted 2Q EPS loss of $0.14 and management withdrawing guidance for the year due to gravity-defying action in the commodity dairy markets. But the fact that the stock only dropped 4% on the day on unusually high trading volume suggests that investors now view the name as washed out and poised to benefit from a more favorable operating environment as commodity dairy prices fall. "With global and domestic dairy supplies now increasing rapidly and demand starting to ease, we think prices have nowhere to go but down from here. We continue to harbor concerns about the long-term future of Dean Foods, but we like the risk/reward balance in the stock over the next nine months as the falling costs bring Dean's margins get back to a more normal range.” Dean Foods Company closed on Monday at $15.20.