Dr. Pepper Snapple Group Inc. was downgraded to market perform from outperform at Wells Fargo on questions about why the beverage company merged with Keurig Green Mountain. Its price target was raised to $124 from $112. “In short, we’re not entirely clear by see some benefits given expanded distribution, stepped up innovation and more allied brand type partnerships,” analysts led by Bonnie Herzog wrote. Wells Fargo proposes a few reasons why the companies would combine, like JAB’s plans for additional M&A in the future. But it’s unclear. “We believe enough uncertainty exists to keep shares range-bound in the near-term and are therefore reducing our rating to market perform,” the note said. Dr. Pepper Snapple shares closed Monday up 22.4%, and shares are up 29% for the past year. The S&P 500 index is up 25.1% for the last 12 months.
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