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UBS Gets More Bullish on Coke and Pepsi (KO, PEP)

By Dividend.com,  May 25, 2011, 09:32:41 AM EDT

Beverage giants The Coca-Cola Company ( KO ) and PepsiCo, Inc. ( PEP ) on Wednesday both caught some positive sentiment from analysts at UBS.

The firm said it boosted its earnings estimates for KO through 2012, noting that higher performance in emerging markets are helping spur volume growth. UBS currently rates KO as a "Buy" with a $75 price target, which suggests an 11% upside to the stock's Tuesday closing price of $67.47.

Meanwhile, UBS boosted its price target on PEP to $82, suggesting a 16% upside to the stock's Tuesday closing price of $70.98. The firm maintained its "Buy" rating on PEP, noting the company is attractively valued given the sum of its beverage and snack food parts.

Both Coke and Pepsi shares were mostly flat in premarket trading Wednesday.

The Bottom Line
Shares of Coca-Cola ( Ko ) have a 2.79% dividend yield, based on last night's closing stock price of $67.47.
Shares of Pepsico ( PEP ) have a 2.90% dividend yield, based on last night's closing stock price of $70.98.

The Coca-Cola Company ( KO ) and PepsiCo, Inc. ( PEP ) are both recommended, holding a Dividend.com DARS™ Rating 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.


This article appears in: Investing, Stocks

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