UPDATE: Goldman Sachs Upgrades Dr Pepper Snapple to Neutral
Goldman Sachs raises its rating on Dr Pepper Snapple (NYSE: DPS) to Neutral from Sell and raises its price target up $1 to $41 as it no longer sees EPS risk to the stock.
Goldman Sachs says, "We remove DPS from the America's Sell List and upgrade the stock to Neutral. Since adding DPS to our Sell List on April 10, 2011, the shares are up 3.5% vs. the S&P -0.2% and +8.4% for the beverage group. Over the last 12 months DPS is +9.4% vs S&P +2.7% and +16.1% for the beverage group. We no longer see EPS risk as commodity relief should cushion competition and drive margin upside in 2012. Valuation is less demanding, with DPS now trading inline with its historical average of 13X P/E."
DPS closed at $38.76 a share yesterday.
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