Keurig Dr Pepper stands to benefit from strengthened brand mix and enh...

We don’t anticipate changes to our $122 fair value estimate for Dr Pepper Snapple (which is based on a sum-of-the-parts valuation due to the planned merger with Keurig, which is expected to close in the second quarter) after reviewing the firm’s first-quarter results. Our valuation incorporates 3% sales growth (two thirds of which is driven by price and mix) and low-20s average operating margin over our forecast period for Dr Pepper Snapple on a standalone basis as well as a $103.75 special ...