J.P. Morgan Previews Q2 Of KO And PEP

J.P. Morgan is maintaining its Overweight rating on both Coca-Cola KO and PepsiCo PEP and maintains both stock's price targets, $72 and $80 respectively. Says J.P. Morgan, in its report, “Coca-Cola and PepsiCo report earnings next week. KO leads off on Tuesday, followed by PEP on Thursday. We think results will be in-line with expectations as both companies put up okay organic topline and hit consensus EPS. We expect cautious language around developed markets and potentially lower expectations on FX vs. comments 3 months ago. That said, we do not expect full year numbers to move down from here as we think both companies have some flexibility in the back half.” KO closed yesterday at $67.67 and PEP at $68.60.