A generic image of a person on their laptop
Markets

Goldman Sachs Cuts Target, Estimates for PepsiCo Ahead of Earnings (PEP)

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.

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.

Created by Dividend.com


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

In This Story

PEP

Other Topics

Stocks

Latest Markets Videos