Jan 22 - HSBC Global Research cut its price targets on a number of beverage companies, including Coca Cola Co and Pepsico Inc , saying it expects 2009 trends to remain challenging for the industry, particularly in the first half.
The brokerage expects beverage companies to post weak results for their latest quarters and provide conservative outlooks due to challenging global consumer environment and industry pressures.
HSBC said the share prices of its global beverage stocks under coverage fell 31.7 percent on average in 2008, compared with a 20.5 percent drop in the Dow Jones US Beverages index and a 38.5 percent decline in the S&P 500 index.
Concentrate companies and alcoholic beverage companies performed better than the average beverage stock, declining in the 20 percent range, compared with its five soft drink bottlers under coverage which fell 42.7 percent, it added.
The brokerage, which has a cautious outlook for the companies entering 2009, expects pressure to ease in the second half of the year.
HSBC cut its price targets on Coco Cola's stock to $49 from $54, while Pepsico's target was cut to $62 from $70.