NEW YORK (TheStreet) -- Shares of Dean Foods Coa are slipping 3.09% to $12.84 in early market trading after the dairy company's rating was cut to "hold" from "buy" at BB&T Capital this morning. Analysts at theafirm also removed its $18 price target on the stock. Dean Foods is thealargest processor and distributor of dairy products in the U.S.awith brands including Land O'Lakes, Lehigh Valley Dairy Farms and Tuscan. Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Separately, TheStreet Ratings team rates DEAN FOODS CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate DEAN FOODS CO (DF) a HOLD. The primary factors that have impacted our rating are mixed,asome indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including poor profit margins, a generally disappointing performance in the stock itself and generally higher debt management risk." Highlights from the analysis by TheStreet Ratings Team goes as follows: DF's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 7.5%. Growth in the company's revenue appears to have helped boost the earnings per share. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Food Products industry and the overall market, DEAN FOODS CO's return on equity significantly exceeds that of both the industry average and the S&P 500. DEAN FOODS CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, DEAN FOODS CO increased its bottom line by earning $3.39 versus $0.26 in the prior year. For the next year, the market is expecting a contraction of 107.4% in earnings (-$0.25 versus $3.39). The debt-to-equity ratio of 1.46 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, DF's quick ratio is somewhat strong at 1.13, demonstrating the ability to handle short-term liquidity needs. The gross profit margin for DEAN FOODS CO is rather low; currently it is at 18.37%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.02% trails that of the industry average. You can view the full analysis from the report here: DF Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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