Dean Foods advances following Stifel Nicolaus upgrade

theflyonthewall.com

Dairy food maker Dean Foods (DF) is climbing after Stifel Nicolaus analyst Christophoer Growe upgraded the stock to Buy from Hold in a note to investors earlier today. After meeting with the company's management, the analyst believes that Dean Foods' stock is undervaluing its business. Within the next few months, Dean Foods should spin off most of WhiteWave (WWAV), its specialty dairy and dairy substitute business, to shareholders, Growe believes. During that period, Dean is also poised to significantly reduce its debt and stabilize its earnings growth, added the analyst. Moreover, the company may introduce a dividend with a 4%+ yield and obtain significant cost savings in the near-term, predicted Growe, who placed a $21 price target on the shares. In mid-morning trading, Dean Foods rose 65c, or 3%, to $17.80.

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