Markets

PepsiCo’s Estimates, Target Slashed at UBS, but Still a “Buy” (PEP)

Beverage and snack food giant PepsiCo, Inc. ( PEP ) on Monday saw its earnings estimates and price target lowered by analysts at UBS.

The firm said it lowered its estimates for PEP through 2012, citing decelerating sales growth.

Still, the firm maintained its "Buy" rating and set a new $72 price target, which suggests a smaller 18% upside to the stock's Friday closing price of $61.02.

PepsiCo shares rose 48 cents, or +0.8%, in premarket trading Monday.

The Bottom Line

Shares of Pepsico ( PEP ) have a 3.38% dividend yield, based on Friday's closing stock price of $61.02. The stock has technical support in the $57-$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.

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