UPDATE: Citigroup Downgrades Dr. Pepper Snapple Group

In a note issued Tuesday morning, Citigroup analyst Wendy Nicholson downgraded shares of Dr. Pepper Snapple Group DPS from Buy to Neutral and maintained a $61 price target.

Nicholson started her note by stating that Dr. Pepper has gained 22 percent year-to-date which is more than double the rise in Coca-Cola, Pepsi or the S&P 500. With this in mind, the main reason for her downgrade appears to be a valuation call.

In addition, Nicholson noted concerns about decreased ad spending vs. an increase in competitors, the company's dividend yield no longer being the best in the group, and low margin expansion.