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PepsiCo’s Estimates Cut at UBS Following Q3 Earnings Report (PEP)

Beverage and snack food giant PepsiCo, Inc. ( PEP ) on Thursday saw its earnings estimates reduced by analysts at UBS.

The firm said it cut its estimates for PEP through 2012 following the company's Wednesday earnings report .

UBS noted Pepsi continues to battle rising input costs and may not have the pricing power to pass those costs along. Still, the analyst maintained its "Buy" rating and $72 price target, which suggests a 15% upside to the stock's Wednesday closing price of $62.70.

PepsiCo shares fell 29 cents, or -0.5%, in premarket trading Thursday.

The Bottom Line

Shares of Pepsico ( PEP ) have a 3.29% dividend yield, based on last night's closing stock price of $62.70. The stock has technical support in the $58-$60 price area. If the shares can firm up, we see overhead resistance around the $64 price level.

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.

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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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