Goldman Sachs Downgrades Dean Foods (DF) to Neutral; Removing from Americas Buy List on Risk of Dairy Inflation
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Price: $10.25 -2.57%
Rating Summary:
8 Buy, 5 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
8 Buy, 5 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade DF Now!
Goldman Sachs downgraded Dean Foods (NYSE: DF) from Buy to Neutral with a price target of $17.00.
Analyst, Judy E. Hong, said, "We are removing DF from the Americas Buy List and downgrading to Neutral as we lower our EPS estimates on our expectation of higher milk costs later in the year and into 2013. Our thesis of deflating milk costs, substantial cost savings, and “good enough” volumes has largely played out. Valuation is still undemanding at less than 7X EV/EBITDA and DF shares have fallen 12% over the past week on concerns over higher corn prices potentially driving milk inflation. That said, DF shares are still up more than 30% ytd (vs. the S&P 500 up 6.1%) and we see sentiment continuing to turn negative in the near term as elevated grain prices now pose downside risk to estimates."
Lowers FY13 EPS estimate from $1.38 to $1.27 and FY14 from $1.62 to $1.50.
For an analyst ratings summary and ratings history on Dean Foods click here. For more ratings news on Dean Foods click here.
Shares of Dean Foods closed at $14.78 yesterday, with a 52 week range of $7.83-$17.25.
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Analyst, Judy E. Hong, said, "We are removing DF from the Americas Buy List and downgrading to Neutral as we lower our EPS estimates on our expectation of higher milk costs later in the year and into 2013. Our thesis of deflating milk costs, substantial cost savings, and “good enough” volumes has largely played out. Valuation is still undemanding at less than 7X EV/EBITDA and DF shares have fallen 12% over the past week on concerns over higher corn prices potentially driving milk inflation. That said, DF shares are still up more than 30% ytd (vs. the S&P 500 up 6.1%) and we see sentiment continuing to turn negative in the near term as elevated grain prices now pose downside risk to estimates."
Lowers FY13 EPS estimate from $1.38 to $1.27 and FY14 from $1.62 to $1.50.
For an analyst ratings summary and ratings history on Dean Foods click here. For more ratings news on Dean Foods click here.
Shares of Dean Foods closed at $14.78 yesterday, with a 52 week range of $7.83-$17.25.
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