Dean Foods: Jefferies downgrades 'buy' rating

(CercleFinance.com) - Jefferies has downgraded its "buy" rating on Dean Foods to "hold" and has slashed its target price from 13 dollars to 6 dollars, " given low visibility into timing of margin inflection" and "although valuation looks attractive.
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While it considers the opportunity of cost savings "significant enough to more than offset secular headwinds," a disappointing publication makes it think that the recovery of DF's margins will take much longer to materialise.

"In the meantime, competitive activity remains elevated, volume declines persist and DF continues to lose share," the broker adds in the summary of its report on the agri-food group.



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