UPDATE: Credit Suisse Initiates Coverage on Dr. Pepper Snapple Group with Neutral Rating, $50 PT on Lack of Catalysts

In a report published Wednesday, Credit Suisse analyst Michael Steib initiated coverage on Dr. Pepper Snapple Group DPS with a Neutral rating and $50.00 price target. In the report, Credit Suisse noted, “Substantial investments have allowed the company to catch up with peers after years of underinvestment. DPS's exposure to non-cola CSDs is a positive but since ~90% of the company's overall portfolio is in CSDs, overall volume growth remains elusive. DPS is trading at a 22% P/E discount to peers vs a long-term average of 15%; however, we do not see a catalyst for DPS to rerate for now.” Dr. Pepper Snapple Group closed on Tuesday at $47.43.