Will WhiteWave (WWAV) Stock Fall on JPMorgan Downgrade?

WhiteWave (WWAV) has been purchased by Danone, and analysts at JPMorgan have downgraded the stock on the deal.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of WhiteWave Foods (WWAV)  are up 0.05% to $56.26 this morning as the company's deal with Danone (DANOY) pushed analysts at JPMorgan to downgrade the stock to "neutral" from "overweight."

The firm raised its price target on shares of the Denver-based organic foods company to $56.25 from $48.

Analysts said this morning that the changes in ratings and price target reflect the fact that "the deal as proposed will be consummated."

WhiteWave Foods announced yesterday that yogurt giant Danone had agreed to acquire the company for $12.5 billion, doubling Danone's U.S. business.

The firm added that other potential buyers, including PepsiCo (PEP), Coca-Cola (KO) and Nestle (NSRGY) have either indicated no interest in the company, or may be frightened away by antitrust concerns.

(WhiteWave is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

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, notable return on equity and compelling growth in net income. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: WWAV

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. 

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