Bernstein Downgrades Dean Foods as Retailers Turn to Cheaper Options
The dairy company is under pressure as less expensive milk alternatives become the norm.
Bernstein analyst Alexia Howard downgraded Dean Foods Co (DF) - Get Report to "underperform" on concerns retailers are turning away from the Dallas-based dairy company's products.
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.
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