BMO Says Structural Improvements at Dean (DF) Won't Be Able to Offset Impact of Rising Costs, Downgrades
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Price: $10.52 +2.04%
Rating Summary:
8 Buy, 5 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
8 Buy, 5 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade DF Now!
Shares of Dean Foods (NYSE: DF) are getting slammed Monday afternoon following an earlier downgrade from Outperform to Market Perform by BMO Capital. The stock last traded at $13.57, down about 6.5 percent from Friday's close.
BMO cited a continued move in the price of raw milk on the heels of hot weather, rising feed costs, and possible deterioration in retailer's promotional activity. While the firm did note Dean Foods' recent structural improvements, BMO said changes to the Fresh Dairy segment will not be enough to offset falling prices and surging costs.
The firm reduced FY12 and FY13 EPS estimates on Dean Foods, but maintained a $16 price target.
Shares are down more than 20 percent since the beginning of July as fears related to a widespread drought in the US continue to linger.
Visit our Analyst Ratings page to track all the market-moving analyst action on shares of Dean Foods.
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BMO cited a continued move in the price of raw milk on the heels of hot weather, rising feed costs, and possible deterioration in retailer's promotional activity. While the firm did note Dean Foods' recent structural improvements, BMO said changes to the Fresh Dairy segment will not be enough to offset falling prices and surging costs.
The firm reduced FY12 and FY13 EPS estimates on Dean Foods, but maintained a $16 price target.
Shares are down more than 20 percent since the beginning of July as fears related to a widespread drought in the US continue to linger.
Visit our Analyst Ratings page to track all the market-moving analyst action on shares of Dean Foods.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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