Barron's Says Dr Pepper Snapple Could Rise 25% This Year (DPS,KO,PEP)
3/15/2010-Barron's said shares Dr Pepper Snapple Group (NYSE: DPS) have leapt 150% in the past year, but the stock still has ample room to climb as it trades at a significant discount to giant rivals Coca Cola (NYSE: KO) and PepsiCo (NYSE: PEP) -- and the company has some large, underappreciated opportunities for expansion.
The stock could rise 25%, to more than $40, according to Barron's.
Barron's said, "The consensus expectation of analysts, which could well prove to be too cautious, is for earnings to jump by 17% this year, to $2.30, and another 10% in 2011, to $2.51. That leaves the shares trading at 14.8 times 2010 profit, below the soft-drink industry's average multiple of 15.6."
Write to Chip Brian at cbrian@tradethetrend.com
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