Goldman Sachs Remains Bullish on Coke and Pepsi, Bearish on Dr Pepper (KO, PEP, DPS)

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Analysts at Goldman Sachs on Tuesday offered continued bullish sentiment on two major beverage makers, but remained cautious on another.

The firm said that second half pricing increases could drive profits higher for major beverage makers, which could drive prices higher as the year progresses.

Goldman's top pick of the group is PepsiCo, Inc. ( PEP ), which they rate a "Conviction Buy." Next highest rated is The Coca-Cola Company ( KO ) at a "Buy," while Dr Pepper Snapple Group Inc. ( DPS ) brings up the rear with a "Sell" rating. The analyst noted DPS faces more competition in the marketplace.

The Bottom Line
Shares of Pepsico ( PEP ) have a 2.93% dividend yield, based on Friday's closing stock price of $70.19.
Shares of Coca-Cola ( KO ) have a 2.76% dividend yield, based on Friday's closing stock price of $68.09.
Shares of Dr.Pepper Snapple Group ( DPS ) have a 3.04% dividend yield, based on Friday's closing stock price of $42.15.

PepsiCo, Inc. ( PEP ), The Coca-Cola Company ( KO ), and Dr Pepper Snapple Group Inc. ( DPS ) are all "Recommended," holding Dividend.com DARS™ Ratings of 3.6 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: DPS

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