Imperial Capital Downgrades The WhiteWave Foods Company (WWAV) to In-Line

Imperial Capital downgraded The WhiteWave Foods Company (NYSE: WWAV) from Outperform to In-Line with a price target of $47.00 (from $46.00).

Analyst Mitchell Pinheiro commented, "With the stock trading at 19.0x 2015 EBITDA, we believe it is unlikely that the valuation multiple can expand from the current lofty levels unless earnings growth can show signs of acceleration. WWAV’s 1Q15 performance was better than expected with favorable revenue visibility in all but the America’s Fresh Foods segment (Earthbound Farms). WWAV’s “organic” growth of 9% and low double-digit growth, including acquisitions, should continue, and in a few years, the China JV might even start contributing positively, which is the uncertainty in the potential valuation, in our view. The current 19.8x multiple on our 2015 EBITDA estimate is evidence of the strong enthusiasm for the WWAV story and we believe it appropriately reflects the above-average revenue and earnings growth outlook, acquisition value, and, to some extent, the scarcity value premium for large, scalable brands and companies in the natural and organic sector."

The firm is raising 2015 EPS estimate to $1.14 from $1.09 and 2016 EPS estimates to $1.29 from $1.27.

For an analyst ratings summary and ratings history on The WhiteWave Foods Company click here. For more ratings news on The WhiteWave Foods Company click here.

Shares of The WhiteWave Foods Company closed at $46.10 yesterday.

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