Howard wrote in a Thursday note that retailers are increasingly turning to cheaper private label milk in an effort to compete with low-price competitors. This change could last for a longer time than it has in previous cycles, Howard said.
Bernstein lowered Dean Foods' price target to $13 from $18, implying a 12% downside.
Dean Foods stock has traded down over 31% this year and fell over 3% in late-morning trading.
More of What's Trending on TheStreet: