UBS Cuts Estimates on Dr Pepper Snapple (DPS); Volumes Down, Ad Spending Likely Go Up

UBS maintains a 'Neutral' on Dr Pepper Snapple (NYSE: DPS) price target lowered $1 to $40.

UBS analyst said, "Total company volumes were down 1% in 2011. Within the portfolio, Dr Pepper trademarks were flat, ‘Core 4’ down 2% and Non-Carbonated beverages down 2%. Aside from Snapple, Crush, and Canada Dry, the vast majority of the portfolio was down. Given the heightened competitive pressures from Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP) in 2012, volume growth will continue to be difficult, despite increases in advertising spend."

UBS lowers FY12 EPS estimate from $2.97 to $2.91 and FY13 from $3.27 to $3.19.

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 $38.38 yesterday.

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