PepsiCo Rises After Deutsche Bank Ups '10 Estimate

SAN FRANCISCO (AP) — Shares of PepsiCo Inc. rose on Friday after Deutsche Bank raised its 2010 profit estimate on the snacks and drinks seller, based on lower projections for the cost of interest and for depreciation.

Assuming it could get a boost from improved currency comparisons and lower input costs, the profit projection could rise further, Deutsche Bank analyst Marc Greenberg told investors in a research report.

Greenberg said Purchase, N.Y.-based PepsiCo, the second-biggest soda maker after the Coca-Cola Co., is likely to earn 2010 profit of $4.20 per share, 4 cents higher than Deutsche Bank's previous estimate.

Analysts polled by Thomson Reuters forecast 2010 profit of $4.10.

PepsiCo shares rose $2.12, or 3.6 percent, to $60.58 in midday trading.

Greenberg said PepsiCo's share price has lagged due to "unwarranted deal overhang," related to investor concerns about the pending closure of a PepsiCo plan to buy its two biggest bottlers. Greenberg said the deal to buy Pepsi Bottling Group and PepsiAmericas Inc. could close in late 2009 or early 2010.