Buy Dr Pepper Snapple (DPS) on Bai Sale Weakness - Stifel

October 4, 2016 11:38 AM EDT
Get Alerts DPS Hot Sheet
Price: $89.54 --0%

Rating Summary:
    5 Buy, 17 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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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.

For an analyst ratings summary and ratings history on Dr Pepper Snapple click here. For more ratings news on Dr Pepper Snapple click here.

Shares of Dr Pepper Snapple closed at $90.76 yesterday.

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