Buy Dr Pepper Snapple (DPS) on Bai Sale Weakness - Stifel
- Health, energy stocks hit Wall Street, Microsoft lifts Nasdaq
- Unusual 11 Mid-Day Movers 10/21: (ALKS) (CXRX) (CERC) Higher; (SGY) (MBRX) (STS) Lower
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Stifel analyst Mark Swartzberg notes weakness in Dr Pepper Snapple (NYSE: DPS) (-4.1%) is related to news reports that DPS "allied brand" Bai is pursuing a sale. DPS distributes Bai and other allied brands (e.g., FIJI, AriZona tea, Vita Coco) in exchange for minority interests.
Swartzberg would consider today's weakness as a buying opportunity. "Shares have fallen by more than the value of the loss (i.e., we estimate $0.14 in potential lost earnings, or $3.01 in per share value)," he said.
The firm reiterated a Buy rating and price target of $102 on DPS.
Shares of Dr Pepper Snapple closed at $90.76 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Stifel Upgrades PayPal (PYPL) to Buy Following 'Solid' Q3 Results
- Wedbush Reiterates Outperform on Pool Corp. (POOL) Following 3Q Report
- SunTrust Raises Price Target on E*TRADE Financial (ETFC) to $31 Following Solid 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Rumors
Related EntitiesStifel, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!