Continue reading PepsiCo earnings preview

PepsiCo earnings preview originally appeared on BloggingStocks on Tue, 21 Jul 2009 18:00:00 EST. Please see our terms for use of feeds.

• Citigroup upgraded Cooper Industries (NYSE: CBE) to Hold from Sell to reflect improving macro indicators and a belief negative earnings revisions are unlikely going forward. The firm raised its target price to $37 from $28.
  
• Royal Bank of Scotland upgraded Siemens (NYSE: SI) to Buy from Hold on expectations the company will benefit from an economic recovery.
  
• Banc of America/Merril upgraded State Street (NYSE: STT) to Buy from Neutral and raised their price target to $50 from $40 following stress test results that show the company does not need additional capital. The analyst said the news "clears one of the bars on capital concerns."
  
• Teradata (NYSE: TDC) was raised to Market Weight from Underweight at Thomas Weisel.
  
• Target (NYSE: TGT) was lifted to Overweight from Neutral at JP Morgan.
  
• Diageo (NYSE: DEO) was upgraded at UBS to Neutral from Sell.

Continue reading Analyst upgrades, downgrades and initiations: STT, TGT, PEP, V, WMT ...

Analyst upgrades, downgrades and initiations: STT, TGT, PEP, V, WMT ... originally appeared on BloggingStocks on Fri, 08 May 2009 11:00:00 EST. Please see our terms for use of feeds.

• Stephens upgraded Arris (NASDAQ: ARRS) to Overweight from Equal Weight following the company's Q1 results and raised its target on shares to $15 from $8.
  
• Goldman upgraded Goodyear Tire (NYSE: GT) to Neutral from Sell and raised their target to $11 from $7 citing better earnings prospects and stabilizing volumes.
  
• KeyBanc upgraded Parkway Properties (NYSE: PKY) to Hold from Underweight citing the company's improved balance sheet and valuation.
• Digital River (NASDAQ: DRIV) was raised to Perform from Underperform at Oppenheimer.
  
• Barclays (NYSE: BCS) was raised to Buy from Sell at Royal Bank of Scotland.
  
• First Potomac (NYSE: FPO) was upgraded at RBC Capital to Sector Perform from Underperform.

Continue reading Analyst upgrades, downgrades and initiations: GT, BCS, PAS, UPS, HSBC ...

Analyst upgrades, downgrades and initiations: GT, BCS, PAS, UPS, HSBC ... originally appeared on BloggingStocks on Thu, 30 Apr 2009 11:00:00 EST. Please see our terms for use of feeds.

We're in the heat of earnings season, with many of the top 100 S&P 500 companies reporting this week. One name that slightly fizzled at its earnings report today was PepsiCo Inc. (NYSE: PEP), which announced first-quarter net results of $1.14 billion, or 72 cents per share, a 0.9% decline from previous year's levels.

On the plus side, the per-share result was a nickel better than analysts were expecting, according to Thomson Reuters. Revenue, on the other hand, slipped 0.8% lower to $8.26 billion, falling shy of expectations for $8.28 billion.

While the numbers didn't exactly wow the Street (PEP shares are slightly lower in early trading), they also didn't illustrate a significant fall-off from the previous year, despite company warnings that the first half of 2009 would face challenging year-over-year comparisons amid rising commodity costs and shifting foreign exchange rates.

Continue reading PepsiCo Inc. (PEP) bids for bottlers as earnings edge lower

PepsiCo Inc. (PEP) bids for bottlers as earnings edge lower originally appeared on BloggingStocks on Mon, 20 Apr 2009 12:40:00 EST. Please see our terms for use of feeds.

• KeyBanc upgraded Greenbrier (NYSE: GBX) to Buy from Hold as it believes the company has options to forestall covenant violations or bankruptcy, event if conditions deteriorate further.
  
• Friedman Billings upgraded Whole Foods (NASDAQ: WFMI) to Market Perform from Underperform citing low expectations, favorable FTC settlement, progress on cost cutting, and valuation.
  
• JP Morgan believes First Merit (NASDAQ: FMER) is one of the best positioned Midwest banks to weather the storm and notes its compelling valuation and capital levels. The firm upgraded shares to Overweight from Neutral.
• Coca-Cola Enterprises (NYSE: CCE) was raised to Buy from Neutral at Goldman.
  
• Newell Rubbermaid (NYSE: NWL) was upgraded to Buy from Neutral at Banc of America/Merrill.
  
• Compass Minerals (NYSE: CMP) was lifted to Outperform from Perform at Oppenheimer.

Continue reading Analyst upgrades, downgrades and initiations: WFMI, CCE, S, XOM, JPM ...

Analyst upgrades, downgrades and initiations: WFMI, CCE, S, XOM, JPM ... originally appeared on BloggingStocks on Mon, 16 Mar 2009 12:05:00 EST. Please see our terms for use of feeds.

• Baird upgraded MSM Industrial (NYSE: MSM) to Outperform from Neutral based on valuation and a positive view for Industrial Distributors.
  
• William Blair upgraded Allscripts (NASDAQ: MDRX) to Outperform from Market Perform on valuation following the recent pullback and believes Allscripts is well positioned to benefit from public policy that drives adoption of electronic medical records.
  
• Citigroup upgraded Consolidated Edison (NYSE: ED) to Buy from Hold as they believe the ALJ recommendation in the company's pending electric rate case indicates potential for an improving outlook.
• Raytheon (NYSE: RTN) was raised to Buy from Neutral at Goldman.
  
• Smith & Nephew (NYSE: SNN) was upgraded at JP Morgan to Neutral from Underweight.
  
• Becton Dickinson (NYSE: BDX) was upgraded to Overweight from Equal Weight at Morgan Stanley.

• Oppenheimer downgraded Bio-Reference Labs (NASDAQ: BRLI) to Perform from Outperform as they believe weaker volumes could pressure top-line growth in the near-term. The firm lowered their target to $25 from $30.
  
• Morgan Stanley downgraded shares of Alcatel-Lucent (NYSE: ALU) to Equal Weight from Overweight to reflect market deterioration as they find the risk/reward as balanced at current levels.
  
• JP Morgan cut Nestle (OTC: NSRGY) to Underweight from Neutral on concerns the company's 2009 revenue will miss consensus estimates due to market share losses.
• Rio Tinto (NYSE: RTP) and Anglo American (NASDAQ: AAUK) were lowered to Hold from Buy at Deutsche Bank.

Continue reading Analyst upgrades, downgrades and initiations: ED, RTN, ALU, NSRGY, RTP, HPQ ...

Analyst upgrades, downgrades and initiations: ED, RTN, ALU, NSRGY, RTP, HPQ ... originally appeared on BloggingStocks on Fri, 09 Jan 2009 11:40:00 EST. Please see our terms for use of feeds.

This post is one of six articles on beverage-related stocks. Here are five other investment ideas to sip on.

"PepsiAmericas (NYSE: PAS) is the world's second-largest bottler of PepsiCo beverages," notes Vahan Janjigan, noted quantitative analyst and editor of the industry-leading The Forbes Growth Investor.

"PepsiAmerica's is 44% owned by PepsiCo (NYSE: PEP). Brands licensed from PepsiCo accounted for 90% of 2007 sales. The U.S. was responsible for 70% of first half 2008 sales.

"This territory consists of 19 states mostly in the Midwest. Pepsi, Mountain Dew, and Aquafina are top brands in the U.S. Central and Eastern Europe generated 25% of sales. Markets include Ukraine, Poland, Romania, Hungary, Czech Republic, and Slovakia.

"The U.S.is a mature market with limited growth opportunities and has presented special challenges in recent years as consumers shy away from traditional carbonated soft drinks (CSDs) in favor of non-carbonated soft drinks and energy drinks.

"This evolution has opened the door to boutique beverage companies, allowing them to grab market share from the traditional players.

"More recently, the U.S.has been hampered with a slowing economy. Of course, raw material costs have been soaring everywhere. By raising prices,management has boosted profitability at the expense of sales.

"At the same time, it is investing in growth abroad. It took a 60% stake in Sandora, a juice company in Ukraine, enhancing the company's ability to supply markets in Belarus, Azerbaijan, Russia, and other East European and Central Asian countries.

"Second quarter net sales increased 11.8% to $1.34 billion, with 8.7 percentage points coming from acquisitions. Price increases offset a decline in volume. Higher ingredient costs depressed the gross profit margin by 68 basis points to 40.78%.

"However, strong expense controls boosted the pro forma operating profit margin by 21 basis points to 12.35%. Pro forma net income jumped 21% to $90.9 million or 72 cents per share.

"A weak economy, changing consumer preferences, and competition could hurt sales volumes. Indeed, despite a recent gain in market share for CSDs in the Midwest, management expects U.S.volumes to fall through the second half of 2008. Full-year adjusted revenues should grow 13-14%.

"Earnings should rise 16-18%. Expansion in Europe should support growth through 2010. PepsiCo and CocaCola branded products account for roughly 25% of the highly fragmented beverage market in Central and Eastern Europe. This is a market ripe for consolidation. It provides a rich pipeline of acquisition candidates."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

PepsiAmericas (PAS) Forbes quant offers bottling bet originally appeared on BloggingStocks on Sun, 14 Sep 2008 14:00:00 EST. Please see our terms for use of feeds.

Beverage stocks are often considered "defensive" in nature. After all, no matter what troubles beset the economy, people continue to eat and drink.

Granted, a recessionary environment might impact purveyors of expensive champagnes. But our focus here is on everyday canned sodas and moderately-priced beer and wine.

Of course, no report on beverages would be complete without the two giants of the field -- Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP).

Chuck Carlson, editor of The DRIP Investor looks at Pepsi and suggests, "Investors should take advantage of the current price lull to do buying in these shares."

... Read the full article on PepsiCo

Meanwhile, Stephen Leeb, editor of The Complete Investor, looks at Coke and is attracted by both its expanding market opportunities and expanding dividend.

... Read the full article on Coca-Cola

Bottling these drinks is also big business and PepsiAmericas (NYSE: PAS) -- the world's second-largest bottler of PepsiCo beverages -- is a recent feature from quantitative analyst Vahan Janjigan, editor of The Forbes Growth Investor.

... Read the full article on PepsiAmericas

Energy drink maker Hansen Natural (NASDAQ: HANS) has caught the eye of Bill Martin. The editor of BullMarket.com finds the stock attractive because the company has recently attracted some hedge fund investors.

... Read the full article on Hansen Natural

In The Forbes International Investment Report, editor John Christy interviews Lou Gerken of Gerken Capital Associates who sees potential in FEMSA (NYSE: FMX), which produces distributes Coca-Cola, Dos Equis, Tecate Beer in Mexico.

... Read the full article on FEMSA

And Nilus Mattive in his Dividend Superstars newsletter, looks to Chilean wine maker, Vina Concha y Toro (NYSE: VCO) as a play for both growth and income investors.

... Read the full article on Vina Concha y Toro

This report is prepared by Steven Halpern's TheStockAdvisors.com which offers a daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

A six-pack of beverage bets: Coke, Pepsi and Vina Concha Y Toro make the list originally appeared on BloggingStocks on Fri, 12 Sep 2008 13:00:00 EST. Please see our terms for use of feeds.

"With its CEO recently buying $10 million of shares, PepsiAmericas Inc. (NYSE: PAS) has to be considered one of the most credible Insider stories in quite some time," notes Jack Adamo.

Here, in his Insiders Plus newsletter, the advisor -- who specializes in assessing situations in which corporate insiders are purchasing stock -- he looks at the world's second-largest Pepsi bottler.

"When I was a kid, a Pepsi was a dime; today, it's about $1.50 for the same size bottle. So, forgive me if I laugh myself silly when analysts say Pepsi bottlers are in trouble due to cost inflation.

"The price of the product has gone up at a compound annual rate of 5.6% per year for 50 years. Is this year going to kill it? I think not. Nor does CEO, Rober Pohlad whose recent purchase was done through a family-owned holding company.

"It was not a huge buy in relation to his holdings -- it increased his stake in the company from 9.6% to 9.9% -- but $10 million is $10 million. Do that a few times, and pretty soon it starts adding up to real money. (Sorry, couldn't resist.)

"The stock has fallen this year from $36 to $26, which is about where he made his recent buys. After a blowout 2007, the company guided down expectations for 2008, citing economic weakness. The stock quickly tanked.

Continue reading CEO invests $10 million at PepsiAmericas (PAS)

CEO invests $10 million at PepsiAmericas (PAS) originally appeared on BloggingStocks on Mon, 14 Apr 2008 14:30:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Goldman upgraded ConocoPhillips (NYSE: COP) to Buy from Neutral, as they see the stock as inexpensive but views the upgrade "as much about avoiding near-term earnings risk with our pure-play refiners."
  
• Jefferies upgraded shares of Ashland (NYSE: ASH) to Buy from Hold on valuation as they find the risk/reward "intriguing" at current levels.
  
• Bear upgraded Wynn Resorts (NASDAQ: WYNN) to Outperform from Peer Perform citing valuation and Macau operating momentum.

• Photon Dynamics (NASDAQ: PHTN) was raised to overweight from Equal Weight at Lehman.
  
• PepsiAmericas (NYSE: PAS) was upgraded to Neutral from Underweight at HSBC.
  
• JP Morgan upgraded Nordic American Tanker (NYSE: NAT) to Neutral from Underweight.

Analyst upgrades: COP, ASH and WYNN originally appeared on BloggingStocks on Mon, 17 Mar 2008 10:40:00 EST. Please see our terms for use of feeds.

• Wachovia upgraded Legg Mason (NYSE: LM) to Market Perform from Underperform citing valuation, new CEO change, and reduced Citigroup (NYSE: C) ownership.
  
• Bear upgraded Panacos Pharma (NASDAQ: PANC) to Outperform from Peer Perform citing renewed confidence in Bevirimat, an HIV inhibitor, following analysis of Phase IIb data. The firm expects a partnership for Bevirmat to be the next catalyst.
  
• Deutsche Bank raised PepsiAmericas (NYSE: PAS) to Buy from Hold shares on valuation, as they believe the recent weakness is overdone.

• Fannie Mae (NYSE: FNM) was raised to Equal Weight from Underweight at Morgan Stanley.
  
• Friedman Billings added Great Atlantic & Pacific Tea (NYSE: GAP) to its FBR Top Picks List.
  
• Jabil Circuit (NYSE: JBL) was upgraded to Neutral from Sell at Merrill Lynch.

Analyst upgrades: Legg Mason, Panacos Pharma, PepsiAmericas originally appeared on BloggingStocks on Wed, 05 Mar 2008 11:46:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Oppenheimer upgraded shares of Disney (NYSE: DIS) to Outperform from Perform ahead of the company's Q1 results, as they expect in the quarter and find the valuation attractive at current levels.
  
• GlaxoSmithKline (ASE: GSK) was raised to Neutral from Underweight at HSBC on valuation as they believe the dividend yield provides support.
  
• Owens Illinois (NYSE: OI) was upgraded to Buy from Hold at Deutsche Bank following the Q4 upside, as they believe the company is gaining traction with its pricing initiatives.

• PepsiAmericas (NYSE: PAS) was upgraded to Peer Perform from Underperform at Bear Stearns.
  
• Goldman added Simon Property (NYSE: SPG) to its Conviction Buy List.
  
• Jefferies upgraded Infinera (NASDAQ: INFN) to Buy from Hold.

Analyst upgrades: DIS, GSK and OI originally appeared on BloggingStocks on Fri, 01 Feb 2008 11:59:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Lehman downgraded STMicroelectronics (NYSE: STM) to Underweight from Overweight, as they expect the company to underperform its peers.
• UBS downgraded Biogen Idec Inc (NASDAQ: BIIB) to Sell from Neutral, citing valuation and their belief that there would be no significant premium if the company was bought.
• American Community Bancshares (NASDAQ: ACBA) was downgraded to Hold from Buy at Stifel, based on valuation.
• Goldman Sachs downgraded Crosstex Energy Inc (NASDAQ: XTXI) to Neutral from Buy, citing valuation.

• PepsiAmericas Inc (NYSE: PAS) was downgraded to Underweight from Neutral by HSBC.
  
• Amodcs Ltd (NYSE: DOX) was removed from the Conviction Buy List by Goldman Sachs.
  
• Citigroup assumed coverage of Tenneco Inc (NYSE: TEN) with a Sell from a Hold.
  
• Morgan Stanley downgraded LDK Solar (NYSE: LDK) to Equal Weight from Overweight.

Analyst downgrades: STM, BIIB, ACBA and XTXI originally appeared on BloggingStocks on Thu, 13 Sep 2007 11:05:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Goldman Sachs upgraded the U.S. beverage sector, including Coca-Cola (NYSE: KO), Molson Coors Brewing Company (NYSE: TAP), Anheuser Busch Companies (NYSE: BUD), PepsiAmericas Inc (NYSE: PAS) and Coca-Cola Enterprises (NYSE: CCE) to Attractive from Neutral. The firm cited expectations for a stronger 2008, benign commodity cost outlook, better than expected US beer demand, and valuations. Goldman upgraded shares of PepsiCo Inc (NYSE: PEP) to Buy from Neutral citing valuation and improving industry fundamentals.
  
• Bear Stearns upgraded ImClone (NASDAQ: IMCL) to Outperform from Peer Perform citing positive Flex trial results and the new market opportunity for Erbitux.
• Thomas Weisel upgraded Starwood Hotels (NYSE: HOT) and Marriott International (NYSE: MAR) to Market Weight from Underweight based on healthy August trends, credit market may ease concerns over supply growth, and valuations.

• Thornburg Mortgage (NYSE: TMA) was upgraded to Buy from Neutral at UBS.
• Western Digital Corp (NYSE: WDC) was upgraded to Outperform from Peer Perform at Bear Stearns.
• KeyBanc raised Ruby Tuesday (NYSE: RT) to Hold from Underweight.
• Take-Two Interactive Software (NASDAQ: TTWO) was upped to Buy from Hold at Gabelli.

Analyst upgrades 9-11-07: U.S. beverage sector, IMCL, HOT and MAR originally appeared on BloggingStocks on Tue, 11 Sep 2007 10:35:00 EST. Please see our terms for use of feeds.

PepsiCo (PEP) up on bottler's deal originally appeared on BloggingStocks on Tue, 04 Sep 2007 13:05:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: SanDisk (SNDK), Business Objects (BOBJ) and the Beverage Sector top today's list of downgrades.

• SanDisk Corp. (NASDAQ:SNDK) was downgraded to Neutral from Buy at UBS, citing expectations for an oversupply of flash memory in 2006 and 2007.
• Business Objects (NASDAQ:BOBJ) was downgraded to Sector Perform from Outperform at Pacific Crest, citing valuation concerns and increasing competition from Oracle (ORCL), Microsoft (MSFT) and open source competitors.
• The Beverage Sector was downgraded to Cautious from Neutral at Goldman Sachs. The firm cited declining demand in core categories, raw material inflation and valuation.
  • Goldman downgraded PepsiAmericas, Inc. (NYSE:PAS) and Coca-Cola Enterprises, Inc. (NYSE:CCE) to Sell from Neutral
  • while COTT Corp (NYSE:COT) was added to their Conviction Sell List.

OTHER DOWNGRADES:

• Kevin Dann & Partners downgraded shares of Pep Boys (NYSE:PBY) to Hold from Buy on valuation and the lack of near-term catalysts.
• Thomas Weisel downgraded Ikanos Comm (NASDAQ:IKAN) to Peer Perform from Outperform citing a slowdown of VDSL deployments in Japan due to persisting inventory build at NTT.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst downgrades 11-13-06: UBS downgrades SanDisk to Neutral originally appeared on BloggingStocks on Mon, 13 Nov 2006 12:18:00 EST. Please see our terms for use of feeds.