UBS Securities Canada has cut its target price for Cott Corporation, the largest producer of own-label soft drinks in the world.

UBS analyst Caroline Levy cut the target price to US$22 from $24.

She reiterated her "reduce" rating on the stock.

In a research note she said: "Our caution stems from Cott's cost and operating efficiency challenges in the face of management change.

"Since Frank Weiss handed over the CEO reins to John Sheppard in early 2004, Cott has replaced its US operations head and its Canadian chief. We wouldn't be surprised by further changes."

Levy also warned that the increase in raw material costs was hitting Cott's profit margins.