Wall Street Strategies Reiterates Buy Rating, $45 PT On DPS

Wall Street Strategies is reiterating its Buy rating and $45 PT on shares of Dr. Pepper Snapple Group, Inc. DPS. “During the first quarter, despite our expectation for improved sales, the profitability of the Company is likely to be slightly pressured as a result of the significant increase in raw material costs,” Wall Street Strategies writes. “From fuel to aluminum to sugar, prices have risen dramatically compared to the first quarter of 2010.” Despite its concerns about DPS, Wall Street Strategies said that it expects the company to save some costs (relative to the other companies in the beverage industry) “as a result of the distribution agreements.” Dr. Pepper Snapple Group closed Tuesday at $37.38.