PG - PepsiCo and Keurig Dr Pepper fall after Evercore ratings cut in sector shakeout

Evercore ISI downgrades PepisCo (PEP) and Keurig Dr Pepper (KDP) from Outperform to In Line to better align the ratings to the firm's macro view for a strong cyclical-driven EPS recovery in 2021, continued U.S. dollar weakness and emerging market strength, and higher commodity prices.Evercore says it prefers companies undergoing transformational shifts like Coca-Cola (KO), have underappreciated upside from M&A like Coca-Cola European Partners (CCEP) or which stand to benefit from long-term changes in consumer behavior related to the pandemic like Procter & Gamble (PG) and Colgate-Palmolive (CL).Despite the ratings cut, Evercore still sees a strong near and long-term outlook for PEP and KDP.Shares of PepsiCo are down 0.96% premarket and Keurig Dr Pepper is off 1.91%.PepsiCo has the highest Seeking Alpha Quant Rating in the soft drinks sector.

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PepsiCo and Keurig Dr Pepper fall after Evercore ratings cut in sector shakeout