Dr Pepper Snapple Group’s “Neutral” Rating Reaffirmed at Zacks (DPS)
Dr Pepper Snapple Group (NYSE:DPS)‘s stock had its “neutral” rating restated by Zacks in a note issued to investors on Thursday. They currently have a $65.00 price objective on the stock. Zacks‘s price target would indicate a potential upside of 5.14% from the company’s current price.
Zacks’ analyst wrote, “Dr Pepper’s second-quarter 2014 adjusted earnings of $1.06 per share beat the Zacks Consensus Estimate by 15.2%. Moreover, earnings increased 26% year over year on the back of strong margins, lower taxes and shares. Both net sales and volume grew 1% in the quarter. Overall, Dr Pepper has sound long-term fundamentals – strong position in the flavored CSD market, reducing costs and regular cash returns to shareholders. Also, the company had a strong first half which prompted an earnings guidance raise. Notwithstanding the consistent margin discipline, the company needs to turn around sales. Though CSDs showed improving trends this quarter, we await a sustainable improvement before turning more positive on the stock. Weak volume trends, ongoing pressure in the U.S. CSD category and lack of exposure outside the U.S. keep us concerned. We, thus, maintain our Neutral recommendation on the stock. “
DPS has been the subject of a number of other recent research reports. Analysts at Jefferies Group reiterated a “hold” rating on shares of Dr Pepper Snapple Group in a research note on Friday, July 25th. They now have a $55.00 price target on the stock, up previously from $53.00. Separately, analysts at Credit Suisse reiterated a “neutral” rating on shares of Dr Pepper Snapple Group in a research note on Friday, July 25th. They now have a $62.00 price target on the stock, up previously from $58.00. Finally, analysts at Deutsche Bank reiterated a “hold” rating on shares of Dr Pepper Snapple Group in a research note on Friday, July 25th. They now have a $62.00 price target on the stock, up previously from $55.00. Three analysts have rated the stock with a sell rating, eight have given a hold rating and two have given a buy rating to the company’s stock. Dr Pepper Snapple Group currently has a consensus rating of “Hold” and an average price target of $56.67.
Dr Pepper Snapple Group (NYSE:DPS) traded up 1.25% on Thursday, hitting $62.59. 647,886 shares of the company’s stock traded hands. Dr Pepper Snapple Group has a 52 week low of $43.18 and a 52 week high of $61.92. The stock’s 50-day moving average is $60.00 and its 200-day moving average is $56.21. The company has a market cap of $12.213 billion and a P/E ratio of 17.06.
Dr Pepper Snapple Group (NYSE:DPS) last issued its quarterly earnings data on Thursday, July 24th. The company reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.16. The company had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.62 billion. During the same quarter in the previous year, the company posted $0.84 earnings per share. The company’s revenue for the quarter was up 1.2% on a year-over-year basis. On average, analysts predict that Dr Pepper Snapple Group will post $3.55 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Friday, October 3rd. Shareholders of record on Monday, September 15th will be paid a dividend of $0.41 per share. This represents a $1.64 annualized dividend and a dividend yield of 2.65%. The ex-dividend date is Thursday, September 11th.
Dr Pepper Snapple Group, Inc (NYSE:DPS) is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada and Mexico with a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks and mixers.
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