Goldman Sachs Says Better Pricing Will Power Beverage Stocks in the 2nd-Half (PEP) (KO) (DPS)

Goldman Sachs said improving pricing in the 2nd-half should be a positive catalyst for beverage stocks.

The firm said renewed anxiety about soda pricing, which has narrowed the valuation gap between beverage and food, is overdone and they expect an acceleration
of pricing improvements to drive the outperformance of the soft drink sector.

Conviction Buy rated Pepsico, Inc. (NYSE: PEP) is the firm's Top Pick in beverages. The firm also have a Buy on Coca-Cola (NYSE: KO). Dr Pepper Snapple Group, Inc. (NYSE: DPS) is maintained a Sell as it faces a more challenging competitive set.

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