WhiteWave Foods Premium Stock Valuation Expected to Hold Up

Published Date : Mar 25, 2015

The valuation of the premium stock of WhiteWave Foods Co. is expected to catch up having support from strong development prospects prevailing in the organic groceries industry, an analyst stated on Tuesday. The enterprise, whose brands comprise Silk food and beverages as well as Land 'O Lakes and Horizon, has experienced its shares rise over 23%. WhiteWave shifts hands most recently at US$43.08.

Mr. Rupesh Parikh, an analyst from Oppenheimer stated about WhiteWave shares on Tuesday that investors are having hard time putting new investment to work. But they are equivalently or more uncertain to decrease positions following these shares in recent rally.

Mr. Parikh modified an outperform rating and increased his target 25% to US$50. Mr. John Staszak from Argus rolled out coverage on WhiteWave on Tuesday with a buy rating and US$46 target.

Where other packaged food enterprises, have recently seen sluggish development, Staszak estimates WhiteWave to register growth in operating income in the high teens in the coming years. In the previous month, the company rolled out an array of brand extensions that includes yogurt and Silk cashew milk as well as Horizon cheese and macaroni, and cracker products.

The firm gets 85% of its returns from North America, whereas it is capturing market share in Europe recently. WhiteWave recently entered the market of China, through a cooperative venture with China Mengniu Dairy Co. Subsequent to the 2014 acquisitions of Earthbound Farms and So Delicious Dairy Free, WhiteWave is having US$1 billion available for additional buys through a rotating line of credit.