Analyst upgrades Wimm-Bill-Dann shares

A Credit Suisse analyst upgraded shares of Russian milk processor Wimm-Bill-Dann Foods OJSC Monday, saying any concerns about the high price of milk are now priced into the stock.

Analyst Victoria Petrova raised her rating on the shares to "Outperform" from "Neutral."

Petrova said she is still "somewhat cautious" about higher milk prices and the impact of the costs on profit in the first half of the year. She said if the price of milk falls in 2008, the company may not see any benefits from the drop since it has several long-term contracts with suppliers that won't be adjusted if the price changes.

But Petrova said those concerns are now largely expected by the market.

Shares of Wimm-Bill-Dann Foods have dropped 17 percent since the start of the year.

"We therefore believe that the stock becomes an attractive investment with limited downside and appealing upside to fair value," she said.

Shares rose $5.21, or 4.7 percent, to $116.28 in afternoon trading.