Wells Fargo Downgrades Dr Pepper Snapple (DPS) to Market Perform; Fundamentals Have Stalled

Wells Fargo downgraded Dr Pepper Snapple (NYSE: DPS) from Outperform to Market Perform, price target range lowered to $36-$38 from $43-45.

Wells analyst says, "Expectations Of Challenging 2012. Our downgrade is based on the following four reasons: 1) 2012 volumes are likely to be softer than we had anticipated, 2) Commodity costs continue to challenge fundamental improvement, 3) RCI visibility has not improved, and 4) a Higher tax rate. Bottom line - we think fundamentals imply 2012 EPS estimates are too high and we recommend investors stay on the sidelines until DPS issues its 2012 outlook in mid-February. We reduce our valuation range to $36-38 from $43-45, and lower Q4, 2011, and 2012 EPS estimates to $0.76, $2.73, and $2.85, from $0.77, $2.74, and $3.00."

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 $37.96 yesterday.

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