Credit Suisse downgrades Dairy Crest as shares rise

LONDON (ShareCast) - (ShareCast News) - Credit Suisse (Other OTC: CDSSF - news) lowered its rating for Dairy Crest (LSE: DCG.L - news) to 'neutral' from 'outperform' following a strong run in the company's share price.

Analyst Charlie Mills said in a note Credit Suisse had raised its price target to 620p from 580p, after a 17% increase in the share price, triggered by a regulatory update.

On Monday the Competition and Markets Authority said it was likely to accept Muller's proposed remedies to ensure competition after its proposed takeover of Dairy Crest's milk business.

The CMA invited submissions from interest parties on its proposal before accepting the deal.

Credit Suisse said the deal now looks inevitable because the regulator was already well aware of third party views of the merger.

"It looks inevitable that this deal will go through and that come November/December Dairy Crest will be a standalone Cheese & Spreads business," Mills said in a note.

At 1059 BST shares had fallen by 1.24% at 598.50p.