Dean Foods (DF) got upgraded at Goldman Sachs today and increased the price target from $20 to $22.
“We view DF as a compelling sum-of-the-parts story as: (1) we expect a full spin-off of WhiteWave around mid-year 2013 and DF currently owns 87% of WWAV; (2) we see potential for further upside to value if management is able to consummate its intended sale of Morningstar; and (3) we expect DF’s remaining Fresh Dairy Direct (FDD) business to re-rate higher on stabilization of raw milk prices, improved balance sheet and healthy cash generation profile.”
The stock is up about $.60 to $17.20 on the news.
I continue to hold Dean Foods and agree with Goldman on valuation. Read my full analysis on Dean Foods here.
Disclosure: I am long Dean.