UBS Raises PT and Estimates on Dr Pepper Snapple (DPS); Thesis Is Still Limited Upside

July 27, 2012 3:53 PM EDT
Get Alerts DPS Hot Sheet
Price: $90.26 +0.80%

Rating Summary:
    5 Buy, 17 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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UBS reiterates a 'Neutral' on Dr Pepper Snapple (NYSE: DPS) price target of $45.00 (from $43.00).

Analyst, Kaumil S. Gajrawala, said, "We are increasing our 2012 EPS estimate to $2.95 (from $2.93), to reflect: 1) the $0.03 EPS beat in 2Q, and 2) an improving commodity cost outlook (flat in 3Q, up 3% in 4Q) offset by a higher tax rate in the back half. We are forecasting flat volumes with 3% pricing. COGS inflation is expected to be +2%, resulting in slight gross margin expansion." (FY13 from $3.28 to $3.32)

Keeps Neutral rating as management continues making the right moves/strategy, however, still negative n-t volumes and increasing competitive marketplace.

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 $44.66 yesterday.

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