Dr Pepper Receives a Buy from Jefferies

By Ryan Adsit

In a report released yesterday, Kevin Grundy from Jefferies reiterated a Buy rating on Dr Pepper (NYSE: DPS), with a price target of $112. The company’s shares closed yesterday at $92.30.

Grundy wrote:

“DPS announced today that the founder of its recently acquired Bai business, Ben Weiss, has decided to leave the co., appointing DPS vet Lain Hancock as his replacement as Bai CEO. While the news is somewhat unsurprising following DPS’s downward revision to its Bai guidance on its 1Q call, the co. appears on track to meet its recently revised +40-50% YoY guide for Bai. At 19x EV/ULFCF (>15% disc. to peers) we see a favorable risk reward. Maintain Buy, $112 PT. Bai CEO and founder Ben Weiss has decided to leave the business: DPS announced before market today (6/22) that the founder of its recently acquired Bai business, Ben Weiss, has decided to leave the company. The co. announced that 10-year DPS veteran Lain Hancock will replace Mr. Weiss as CEO. Mr. Hancock, who is a member of the co.’s executive leadership team, most recently served as VP of HR for DPS and previously held senior leadership positions in the co.’s supply chain organization. Mr.”

According to TipRanks.com, Grundy is a 5-star analyst with an average return of 7.9% and a 79.4% success rate. Grundy covers the Consumer Goods sector, focusing on stocks such as The Estée Lauder Companies Inc, Edgewell Personal Care, and Monster Beverage Corp.

Currently, the analyst consensus on Dr Pepper is Moderate Buy and the average price target is $103.50, representing a 12.1% upside.

In a report issued on June 7, BMO Capital also upgraded the stock to Buy with a $105 price target.

The company has a one year high of $99.47 and a one year low of $81.05. Currently, Dr Pepper has an average volume of 1.26M.

Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DPS in relation to earlier this year. Last month, Joyce Roche, a Director at DPS bought 1,144 shares for a total of $74,962.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Dr Pepper Snapple Group, Inc. engages in the manufacturing, marketing and distribution of non-alcoholic beverages with a portfolio of flavored carbonated soft drinks and non-carbonated beverages. It operates through the following segments: Beverage Concentrates, Packaged Beverages, and Latin America Beverages. The Beverage Concentrates segment involves in manufacturing and selling carbonated soft drinks and other branded concentrates and syrup. The Packaged Beverages segment offers manufacturing and distribution of packaged beverages and other products through both direct store delivery system and warehouse direct delivery system. The Latin America Beverages segment includes manufacturing and distribution of concentrates, syrup and finished beverages. The company was founded on May 7, 2008 and is headquartered in Plano, TX.,00B2RQ-E