Analyst Actions: Dean Foods Coverage Reinstated With Neutral, TP of $18 At Credit Suisse; Shares Flat


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Dean Foods Company ( DF ) was reinstated with a Neutral rating and target price of $18 a share by analysts at Credit Suisse. Shares of DF are flat at $16.72 in a 52-week range of $9.17 - $19.17.

According to Credit Suisse "the initial public offering of White Wave has boosted Dean's stock price by giving the market better visibility into White Wave's growth prospects and making it available as a pure play packaged goods company, separate from Dean's agricultural nature."

However the analysts gave DF a Neutral rating "due to the lack of clarity on how to value Morningstar and the likelihood of a significant re-basing of earnings in 2013 from stranded overhead and higher dairy costs."

Credit Suisse estimates $1.17 in EPS for 2012 (with 87% ownership of WhiteWave) and $0.63 in 2013 ex White Wave. It also expects a weaker year for DF in 2013 due to the impact of higher dairy costs in both Fresh Dairy Direct and Morningstar.

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This article appears in: Investing , Commodities

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