US: UBS cuts PBG and PepsiCo ratings
Investment bank UBS has lowered its rating on PepsiCo and Pepsi Bottling group, partly on fears that rival Coca-Cola is increasing its marketing efforts.
Both stocks were reduced fro "Buy" to "neutral".
UBS also warned that increasing energy costs could affect earnings.
"While PepsiCo should continue to deliver some of the strongest EPS growth rates within consumer staples, we believe upside from the current consensus EPS estimates is limited," UBS said in a research note.
PepsiCo's earnings per share estimates were lowered to US$2.58 from US$2.61 by UBS, which also cut its price target on the stock to US$61.00 from US$66.50.
Meanwhile, UBS said Pepsi Bottling Group may have to increase its marketing activity in the face of a more aggressive Coca-Cola and Coca-Cola Enterprises partnership.
PBG's EPS estimates were lowered to US$1.83 from US$1.84 for this year.
A recent report on the UK soft drinks market showed that growth in non-carbonates at the expense of traditional carbonated soft drinks is much less marked in the on-premise sector than in the take-hom...
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PepsiCo's president and CFO, Indra Nooyi, has been forced to apologise for remarks she made whilst speaking to the 2005 graduating class of Columbia University's Business School in New York City last ...
PepsiCo has confirmed that it is to drop its low-calorie drink Pepsi Edge....
PepsiCo is rolling out a lime version of its Pepsi and Diet Pepsi brands....
PepsiAmericas yesterday reported a small rise in first quarter net income and earnings per share to US$20.8m and US$0.15 respectively. The results compares to net income of US$20.5m US$0.14 for the fi...
Cadbury Schweppes plans to add Splenda artificial sweetener to Diet 7 Up next month....
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