New York, May 11 - Dr Pepper Snapple, which spun off from Cadbury Schweppes trades as though it was simply a bottler rather than a full-fledged drink maker, analysts said in Barron's financial magazine.
Dr Pepper, whose shares fell from a New York Stock Exchange debut of $29 last week to close Friday at $25.24, "should trade at a premium to the bottlers," Barron's said in its May 12 issue.
Several Wall Street analysts calculate that the stock is undervalued. Andrew Wood at Sanford Bernstein, values it at $35 a share, while Mike Branca of Lehman Brothers put its value at $28 to $32 per share. Goldman Sachs and Morgan Stanley also put a higher value on the stock than its current price, Barron's said.
The article said part of the reason for last week's stock drop was likely selling by British institutions holding Cadbury Schweppes, but which do not want to hold a U.S.-listed beverage maker.