Credit Suisse Begins Coverage on Dr. Pepper Snapple (DPS)
Credit Suisse reported on Wednesday that it has started coverage on beverage company, Dr Pepper Snapple Group Inc. (DPS).
The firm has initiated coverage on DPS with a “Neutral” rating and $50 price target. This price target suggests a 5% increase from the stock’s current price of $47.47.
An analyst from the firm noted, “substantial investments have allowed the company to catch up with peers after years of underinvestment. DPS’s exposure to non-cola CSDs is a positive but since ~90% of the company’s overall portfolio is in CSDs, overall volume growth remains elusive. DPS is trading at a 22% P/E discount to peers vs a long-term average of 15%; however, we do not see a catalyst for DPS to rerate for now.”
Dr Pepper Snapple shares were mostly flat during Wednesday morning trading. The stock is up 7% YTD.
The Bottom Line
Shares of Dr Pepper Snapple Group Inc. (DPS) have a 3.20% yield, based on Wednesday morning’s price of $47.43.
Dr Pepper Snapple Group Inc. (DPS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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