Dean Foods Co., the biggest U.S. dairy processor, may be valued less in a sale than previously estimated, as commodity prices rise and consumers choose cheaper products, Stephens Inc. said.
Dean shares may be worth roughly $11 to $12 each at the midpoint of the range in the event of a sale, less than a previous projection of $13 to $14, when valuing the Fresh Dairy Direct-Morningstar and WhiteWave/Alpro business units against comparable deal values, Farha Aslam, an analyst for Stephens in New York who rates the shares “equal-weight,” said in a report today.
Dean fell 9 cents to $9.80 at 4:15 p.m. in New York Stock Exchange composite trading. The shares plunged 51 percent last year, the biggest decline on the Standard & Poor’s 500 Index.
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