UPDATE: Goldman Sachs Color On DF

Goldman Sachs, which

of Dean Foods Co.

, is providing some color on the stock. “We are upgrading to Buy (was Neutral) and see 55% upside in a year and potential doubling in two years,” Goldman Sachs. “We believe margins have now troughed and we see a path to margin recovery over the next few years, which should drive outsized profit growth. “DF reported 1Q11 EPS of $0.14 earlier this week, $0.08 above consensus driven largely by better Fresh Dairy margins. We are raising 2011 EPS to $0.70 from $0.55 to reflect better margins. More importantly, we are raising 2012/2013 estimates to $1.20/$1.50 from $0.78/$0.91 to reflect the higher base and margins recovering to a normalized of 5%-6% level from the current 3%-4%.” Dean Foods closed Thursday at $12.28.