J.P. Morgan Raises PT On DF To $13

J.P. Morgan is raising its price target on Dean Foods DF from $12 to $13 as it looks forward to next year for the company. In the report, J.P. Morgan writes, “We are nipping our second quarter estimate by $0.02, to $0.18, to reflect a slightly lower operating margin assumption on the company's Fresh Dairy Direct division. But we note that our new estimate remains above the Bloomberg consensus of $0.17, and represents an incremental stronger quarter than Q1, despite a 40% escalation in raw milk prices. Looking into next year, we believe lower dairy costs will drive better margins, and we are raising our estimate by $0.09, to $0.92. Maintaining Neutral rating.” J.P. Morgan is reiterating its Neutral rating on the stock. DF closed at $12.4 yesterday.