Beverage maker Dr Pepper Snapple Group Inc.( DPS
The firm cut its rating on DPS all the way from "Outperform" to "Underperform" and reduced its price target from $45 to $37. That new target represents a small 7% upside to the stock's Thursday closing price of $34.60.
Dr Pepper Snapple shares rose 48 cents, or +1.4%, in premarket trading Friday.
The Bottom Line
We had removed shares of DPS back on Aug.24, when the stock was trading at $36.53. The company has a 2.89% dividend yield, based on last night's closing stock price of $34.60. The stock has technical support in the $30-$32 price area. If the shares can firm up, we see overhead resistance around the $36-$38 price levels. We would remain on the sidelines for now.
Dr Pepper Snapple Group Inc.( DPS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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