Dean Foods Rating Increased to Buy at Stifel Nicolaus (DF)
“Within the next few months, we believe Dean Foods will nearly complete its transformation as we expect most of the WhiteWave business to be spun-off to shareholders, its balance sheet should push below 3X debt/EBITDA, the company could introduce a dividend payment that could hold a 4%+ yield, and the earnings growth should stabilize following the lost customer, a stable milk price environment, and strong cost savings realization. Valuation is a catalyst for the stock – when excluding the value of the WhiteWave stake we find the base dairy business trading at just $5.50 per share and in relation to the $450 million in EBITDA it maintains a roughly 5X EV/EBITDA multiple.,” the firm’s analyst commented.
Shares of Dean Foods traded up 0.62% during mid-day trading on Friday, hitting $17.75. Dean Foods has a 52 week low of $11.45 and a 52 week high of $19.17. The stock’s 50-day moving average is currently $17.44. The company has a market cap of $3.300 billion and a P/E ratio of 20.66.
A number of other analysts have also recently weighed in on DF. Analysts at Credit Suisse upgraded shares of Dean Foods from a neutral rating to an outperform rating in a research note to investors on Wednesday, March 6th. They now have a $21.00 price target on the stock, up previously from $18.00. Separately, analysts at KeyBanc Capital Mkts upgraded shares of Dean Foods from a hold rating to a buy rating in a research note to investors on Monday, March 4th. They now have a $21.00 price target on the stock. Finally, analysts at KeyBanc upgraded shares of Dean Foods from a hold rating to a buy rating in a research note to investors on Monday, March 4th. They now have a $21.00 price target on the stock.
Nine research analysts have rated the stock with a buy rating, two have issued an overweight rating, and five have issued a hold rating to the company’s stock. The company presently has a consensus rating of overweight and an average price target of $20.67.
Dean Foods Company is a food and beverage company. The Company operates through two segments: Fresh Dairy Direct and WhiteWave-Morningstar.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.