Why PepsiCo Stock Tanked Today
On Tuesday, PepsiCo (NASDAQ: PEP) didn't provide much of a sugary, caffeinated buzz for its shareholders. It wasn't directly the company's fault, as the key reason for the dip was an analyst's recommendation downgrade. This pushed the stock down by nearly 3% in price, a notably steeper drop than the 0.2% decline of the S&P 500 (SNPINDEX: ^GSPC).The researcher behind the downgrade was top U.S. lender Bank of America, in the person of pundit Bryan Spillane. He changed his view of PepsiCo from buy to neutral, and cut his price target to $155 per share from his former level of $185. According to reports, Spillane was particularly concerned about an important pillar of the company's business. He wrote that PepsiCo, which specializes in both beverages and snacks (unlike its drinks-only archrival Coca-Cola) is suffering from market share declines in the latter category. Continue reading
On Tuesday, PepsiCo (NASDAQ: PEP) didn't provide much of a sugary, caffeinated buzz for its shareholders. It wasn't directly the company's fault, as the key reason for the dip was an analyst's recommendation downgrade. This pushed the stock down by nearly 3% in price, a notably steeper drop than the 0.2% decline of the S&P 500 (SNPINDEX: ^GSPC).
The researcher behind the downgrade was top U.S. lender Bank of America, in the person of pundit Bryan Spillane. He changed his view of PepsiCo from buy to neutral, and cut his price target to $155 per share from his former level of $185.
According to reports, Spillane was particularly concerned about an important pillar of the company's business. He wrote that PepsiCo, which specializes in both beverages and snacks (unlike its drinks-only archrival Coca-Cola) is suffering from market share declines in the latter category.
