Zacks Reiterates Neutral on Dr Pepper Snapple Group (DPS)
Dr Pepper Snapple Group (NYSE: DPS)‘s stock had its “neutral” rating restated by Zacks in a report issued on Thursday. They currently have a $41.00 target price on the stock.
Zacks’ analyst wrote, “Dr Pepper’s first quarter 2012 earnings of $0.46 per share missed the Zacks Consensus Estimate by $0.02 and prior year earnings by $0.04 per share. Earnings plummeted as top-line growth was offset by a decline in margins. Revenues were up 2% as benefits from price mix were offset by volume declines. Overall, we are encouraged by Dr Pepper’s strong position in the flavored carbonated soft drinks (CSD) market. Moreover, the Rapid Continuous Improvement (RCI) program is also resulting in cost savings and improved cash flows. However, the weak volumes, lack of exposure outside US, difficult macroeconomic environment and rising input costs keep us on the sidelines. We thus have a Neutral rating on the stock with a target price of $41.00.”
Shares of Dr Pepper Snapple Group traded up 0.03% during mid-day trading on Thursday, hitting $39.72. Dr Pepper Snapple Group has a 52 week low of $34.37 and a 52 week high of $43.13. The company has a market cap of $8.424 billion and a P/E ratio of 14.49.
The company last announced its quarterly results on Wednesday, April 25th. It reported $0.46 earnings per share (EPS) for the previous quarter, missing the Thomson Reuters consensus estimate of $0.48 EPS by $0.02. The company’s quarterly revenue was up 2.3% on a year-over-year basis. On average, analysts predict that Dr Pepper Snapple Group will post $0.79 earnings per share next quarter.
Several other analysts have also recently commented on the stock. Analysts at Davenport upgraded shares of Dr Pepper Snapple Group from a “neutral” rating to a “buy” rating in a research note to investors on Thursday. Separately, analysts at UBS AG (NYSE: UBS) cut their EPS estimates on shares of Dr Pepper Snapple Group in a research note on Wednesday. They now have a “neutral” rating and a $40.00 price target on the stock. Finally, analysts at Deutsche Bank (NYSE: DB) raised their price target on shares of Dr Pepper Snapple Group to $43.00 in a research note to investors on Friday, February 17th.
Dr Pepper Snapple Group, Inc. (DPS) is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada and Mexico with a varied portfolio of flavored (non-cola) carbonated soft drinks (CSD) and non-carbonated beverages (NCB), including ready-to-drink teas, juices, juice drinks and mixers.