UPDATE: Deutsche Bank Downgrades Dr Pepper Snapple to Hold (DPS)

Deutsche Bank is out with its report today on Dr Pepper Snapple DPS, downgrading shares of DPS from Buy to Hold. In a note to clients, Deutsche Bank writes, "DPS retains good long-term opportunity to expand brand penetration, is aggressively managing costs, and management strongly committed to returning cash. However we are moving to a neutral stance as recent strength brings the stock close to fair value (14.4x, 9x EBITDA), with only 3% upside to $40 target. We now see more exposure to surging commodity prices as 2011 progresses (lowering estimates), category growth is still sluggish, and competitive environment could heat up." Shares of DPS closed Thursday at $38.66, up 0.29% from Wednesday's close.