WhiteWave Foods (WWAV) Stock Downgraded at Jefferies
NEW YORK (TheStreet) -- WhiteWave Foods (WWAV) stock rating was reduced to "hold" from "buy" at Jefferies on Wednesday morning. The firm has a $56 price target on shares.
Last week, yogurt giant Danone (DANOY) said it would buy the organic foods producer for $56.25 per share.
"We are downgrading WWAV...given our view that the chance of a higher, alternative bid emerging is fairly remote owing to; full/rich valuation...significant synergies earmarked by Danone unlikely to be topped by alternative bidders; reports that PepsiCo (PEP) was interested but thought the valuation was full; and risk that deal may hit anti-trust hurdles not fully priced into stock," Jefferies wrote in an analyst note.
Recent reports suggested PepsiCo was interested in WhiteWave as a way to diversify its beverage business, but ultimately passed on the opportunity due to price, the firm added.
That supports the notion that the company's valuation was largely viewed as full and that other companies may not see the same synergy potential as Danone, Jefferies noted.
Shares of WhiteWave are higher by 0.07% to $55.95 in pre-market trading on Wednesday.
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Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, expanding profit margins, solid stock price performance and notable return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: WWAV