PepsiCo Stock Drops Despite Analyst Upgrades
Shares of PepsiCo (NASDAQ: PEP) have dropped today, down by 7% as of 3 p.m. EDT, amid ongoing market volatility related to the COVID-19 pandemic. The decline comes despite recent bullish remarks from several Wall Street analysts.
CFRA boosted its rating on PepsiCo shares from buy to strong buy, arguing that the consumer staples company was a "defensive" stock with a strong balance sheet and stable earnings power. Analyst Garrett Nelson is also confident that PepsiCo will be able to maintain its dividend, which was recently increased by 7%. Nelson also suggested that demand for PepsiCo products in the Frito-Lay segment could be boosted in the short term as consumers stock up on food. CFRA reduced its price target from $160 to $145 to accommodate for recent market activity.
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Source Fool.com
