Ahead of the Bell: Dean Foods

A JPMorgan analyst removed milk processor Dean Foods Co. from his Focus List Tuesday, noting a recent run-up in the stock price.

Analyst Terry Bivens said the stock has gained about 40 percent in the past six weeks. Because the stock is now valued correctly, Bivens said he was removing it from the U.S. Equity Focus List.

Bivens continues to rate the stock "Overweight." He raised his price target on the stock to $28 from $25.

The analyst said he still expects the company to report strong profit growth, particularly as the operating environment for the company's core dairy division improves.

Milk production, he said, continues to grow and cheese prices have dropped.

Morgan Stanley analyst William Pecoriello, meanwhile, cut his rating to "Equal Weight" from "Overweight" also citing the rise in the stock price.

Pecoriello said other names in the beverage group _ including Coca-Cola Co. and Pepsico Inc. _ might now offer investors more upside.

He said the downgrade "is purely a function of relative upside versus the group."