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Bank of America Gets Bullish on Coke and Pepsi (KO, PEP)

Analysts at Bank of America on Wednesday issued from positive commentary on beverage giants The Coca-Cola Company ( KO ) and PepsiCo, Inc. ( PEP ).

The firm said it reinstated coverage on KO with a "Buy" rating and $76 price target, suggesting an 11% upside to the stock's Tuesday closing price of $68.40.

Meanwhile, Bank of America also resumed coverage on PEP with a "Buy" rating and $72 price target. That new target implies a potential 10% upside to the stock's Tuesday closing price of $65.53.

Coca-Cola shares were mostly flat in premarket trading Wednesday, while PepsiCo shares fell 28 cents, or -0.4%.

The Bottom Line

Shares of Pepsico ( PEP ) have a 3.14% dividend yield, based on last night's closing stock price of $65.53. The stock has technical support in the $60-$62 price area. If the shares can firm up, we see overhead resistance around the $65.53. Shares of Coca-Cola ( KO ) have a 2.75% dividend yield, based on last night's closing stock price of $68.40. The stock has technical support in the $64-$66 price area. If the shares can firm up, we see overhead resistance around the $70-$71 price levels.

The Coca-Cola Company ( KO ) and PepsiCo, Inc. ( PEP ) are both rated "Neutral" by Dividend.com, with both stocks holding Dividend.com DARS™ Ratings of 3.4 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 Nasdaq, Inc.

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

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