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.
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