UBS Maintains a 'Neutral' on Dr Pepper Snapple (DPS); Cutting Estimates on Weak Volumes and Increased Competition
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Price: $123.66 --0%
Rating Summary:
6 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Neutral' on Dr Pepper Snapple (NYSE: DPS) price target raised $1 to $41.
UBS analyst says, "Despite a $0.07 beat in 4Q, we are lowering our 2012-13E EPS to $2.97 and $3.27 (from $3.03 and $3.30, respectively), to reflect: 1) slower volume growth of +0.5% (despite new product contributions) 2) 2.3% pricing growth, 3) 2.3% y/y input cost inflation in 2012, 4) a higher 37% tax rate going forward, and 5) $350-375m in share repurchases in 2012."
"We see limited upside potential for DPS, given: 1) slowing volume growth, despite new product growth contribution, 2) an increasingly competitive environment due to increased spending by KO and PEP in North America, and 3) ongoing input cost inflation (although COGS should be a smaller headwind vs. 2011). $350-375m in share buybacks in 2012 and a 3.5% dividend yield offer downside support."
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 $39.90 yesterday.
UBS analyst says, "Despite a $0.07 beat in 4Q, we are lowering our 2012-13E EPS to $2.97 and $3.27 (from $3.03 and $3.30, respectively), to reflect: 1) slower volume growth of +0.5% (despite new product contributions) 2) 2.3% pricing growth, 3) 2.3% y/y input cost inflation in 2012, 4) a higher 37% tax rate going forward, and 5) $350-375m in share repurchases in 2012."
"We see limited upside potential for DPS, given: 1) slowing volume growth, despite new product growth contribution, 2) an increasingly competitive environment due to increased spending by KO and PEP in North America, and 3) ongoing input cost inflation (although COGS should be a smaller headwind vs. 2011). $350-375m in share buybacks in 2012 and a 3.5% dividend yield offer downside support."
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 $39.90 yesterday.
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