Deutsche Bank Trims Numbers on Coke and Pepsi as Soft Drink Consumption Slows (PEP, KO)
The analysts maintained a “Buy” rating for both KO and PEP. The firm sees shares of Coke reaching $42, a +12% upside to Friday’s opening price of $37.49. Furthermore, Deutsche Bank values shares of Pepsi at $75, a +3.8% upside to Friday’s opening price of $72.22
Deutsche Bank lowered KO 2013 volume growth from 4.5% to 3.5% and lowered 2013 EPS estimates from $2.18 to $2.15.
PEP had its volume growth estimate cut from 3.5% to 2.3% while 2013 EPS was lowered from $4.41 to $4.36.
Coke and Pepsi shares were down slightly during morning trading on Friday. Over the past year the stocks are up +10.62% and +11.38%, respectively.
The Bottom Line
Shares of Coca-Cola (KO) have a 2.73% dividend yield, based on the latest intraday stock price of $35-$36 price area. If the shares can firm up, we see overhead resistance around the $39-$40 price levels. Shares of Pepsico (PEP) have a 2.98% dividend yield, based on the latest intraday stock price of $72.23. The stock has technical support in the $68 price area. The stock is trading near the all-time high range of $74-$77 a share.
The Coca-Cola Company (KO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. 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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