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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