Goldman Sachs Upgrades Dr Pepper Snapple (DPS) to Neutral

Goldman Sachs upgraded Dr Pepper Snapple (NYSE: DPS) from Sell to Neutral with a price target of $75.00 (from $63.00) on continued EPS upside potential..

Analyst Judy Hong commented, "Our Sell rating has not worked as better CSD pricing, joined with benign COGS environment, has driven significant upward EPS revision for most of 2014. We anticipate another beat in 4Q and believe 2015 is also poised to be an above-average EPS growth year given continued rational pricing and declining input costs. As we re-asses our investment framework for 2015, DPS screens incrementally more positive as we favor US exposed names (~85%); DPS may also benefit from falling oil prices on sales lift and lower freight costs."

The firm raised 2015/16 EPS estimates to $4.00/$4.22 from $3.90/$4.12.

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 $74.81 yesterday.

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