In a report published Thursday, Morgan Stanley analyst Matthew Grainger reiterated an Overweight rating on WhiteWave Foods Co (NYSE: WWAV), but removed the $37.00 price target.
In the report, Morgan Stanley noted, “WWAV yesterday announced an agreement to acquire the So Delicious Dairy Free brand for $195 MM in cash. The company had net sales of $115 MM during the last twelve months and specializes in non-GMO plant-based products, including beverages, creamers, cultured products and frozen desserts. The transaction is expected to close within the next several months, and is expected to both experience strong topline growth in 2H14 and provide accretion during its first 12 months (aided by significant cost synergies, in our view, given supply chain and portfolio similarities). While WWAV has not yet commented on So Delicious' margin profile or potential accretion, we believe this acquisition could offset roughly half the $0.07-0.08 of annualized EPS dilution associated with the recent debt financing.”
WhiteWave Foods Co closed on Wednesday at $36.83.
Latest Ratings for WWAV
| Sep 2014 | Piper Jaffray | Initiates Coverage on | Overweight | |
| Sep 2014 | Deutsche Bank | Maintains | Buy | |
| Sep 2014 | Stifel Nicolaus | Maintains | Buy |
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