NEW YORK (TheStreet) -- Shares of WhiteWave Foods Co. (WWAV) are climbing 1.04% to $47.71 in mid-day trading on Monday after Credit Suisse analysts assumed coverage of the company with an "outperform" rating and raised their price target to $52 from $42.
"Our target price is based on a 40x P/E multiple against our forward 12-month EPS estimate, which is a 21% premium to WhiteWave's peer group of high-growth consumer stocks," analysts said.
However, Credit Suisse added several risks to their price target, citing vulnerability to supplies of organic milk and other organic products, acquisition risk, potential for intensified competition from Nestle (NSRGY) in the creamer category, and exposure to some of Europe's more challenged markets.
WhiteWave Foods, headquartered in Denver, is a consumer packaged foods and beverage company that manufactures, markets, distributes, and sells branded plant-based foods and beverages throughout North America and Europe. Some of their popular subsidiaries are Horizon Organic, Silk, and International Delight.
TheStreet Ratings team rates WHITEWAVE FOODS CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WHITEWAVE FOODS CO (WWAV) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."