Will This Price Target Increase Help Dr Pepper Snapple Group (DPS) Stock Today?

Story updated at 9:50 a.m. to reflect market activity.

NEW YORK (TheStreet) -- UBS raised its price target for Dr Pepper Snapple Group (DPS) to $64 from $61 Friday.

Dr Pepper Snapple gained 0.1% to $61.02 in morning trading.

The analyst firm reiterated its "neutral" rating for the beverage company. Dr Pepper Snapple showed strong second quarter numbers according to USB analysts Stephen Powers and Megan Cody.

"DPS's strong Q2 results have further solidified our belief that DPS is well-equipped to manage through volume headwinds, as it works to successfully offset them with sustainable productivity initiatives," the analysts wrote. "Going forward, we take DPS's revised guidance mostly at face value (albeit tinged with a bit of conservatism) as H2 profitability should be more subdued given increasing costs and anticipated decelerations in Beverage Concentrates and Latin America growth (both negative to margin mix)."

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Separately, TheStreet Ratings team rates DR PEPPER SNAPPLE GROUP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate DR PEPPER SNAPPLE GROUP INC (DPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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