Beverage and snack food giant PepsiCo, Inc. ( PEP ) on Thursday saw its price target and earnings estimates lowered by analysts at Goldman Sachs.
The firm said it cut its target on PEP from $71 to $61, suggesting flat upside to the stock's Wednesday closing price of $60.29.
Goldman also lowered its earnings estimates for the company through 2013, citing concerns in its beverage and Frito's businesses. Pepsi also faces more competition from smaller brands and could see its margins squeezed in coming quarters.
PepsiCo, which is slated to deliver its latest earnings report on Oct. 12, saw its shares post modest gains in premarket trading Thursday.
The Bottom Line
Shares of Pepsico ( PEP ) have a 3.42% dividend yield, based on last night's closing stock price of $60.29. The stock has technical support in the $55-$57 price area. If the shares can firm up, we see overhead resistance around the $62-$64 price levels.
PepsiCo, Inc. ( PEP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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