Credit Suisse Begins Coverage on Dr. Pepper Snapple (DPS)

Credit Suisse Begins Coverage on Dr. Pepper Snapple (DPS)

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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.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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