Morgan Stanley Gets More Bullish on PepsiCo, Dr Pepper Snapple (PEP, DPS)

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Analysts at Morgan Stanley on Monday upgraded beverage giants PepsiCo, Inc. ( PEP ) and Dr Pepper Snapple Group Inc. ( DPS ).

The firm said it boosted its rating on PEP from "Equal-weight" to "Overweight" with a $77 price target, suggesting a 17% upside to the stock's Friday closing price of $65.90. Morgan Stanley noted that PEP's increased marketing should pay off. If not, then management can take more drastic measures.

Meanwhile, the analyst upgraded DPS from "Underweight" to "Equal-weight," noting that the company's U.S. business environment is showing signs of improvement.

PepsiCo and Dr Pepper Snapple shares were mostly flat in premarket trading Monday.

The Bottom Line
Shares of Pepsico ( PEP ) will now have a 3.26% dividend yield, based on Friday's closing stock price of $66.49. The stock has technical support in the $62-$64 price area. If the shares can firm up, we see overhead resistance around the $68-$70 price levels. Shares of Dr. Pepper Snapple Group ( DPS ) have a 3.41% dividend yield, based on Friday's closing stock price of $39.92. The stock has technical support in the $37-$38 price area. The stock is trading near all-time highs of $43 a share.

PepsiCo, Inc. ( PEP ) and Dr Pepper Snapple Group Inc. ( DPS ) are both currently rated "Neutral" by Dividend.com.

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.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: DPS , PEP

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