Pepsico (NYSE:PEP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Monday. The brokerage currently has a $131.00 price objective on the stock. Zacks Investment Research‘s price objective would suggest a potential upside of 11.40% from the stock’s current price.
According to Zacks, “PepsiCo has been doing well on the back of significant innovation, continued momentum in Frito-Lay business, revenue management strategies, improved productivity and cost-saving initiatives, along with better market execution. Moreover, an improving economy, better industry pricing dynamics and a consistency in positive innovation bode well. It rolled out several products recently which management believes will drive sales and profits in 2017. Meanwhile, PepsiCo's shares outperformed its industry in the last three months. That said, growing health awareness has been hurting the CSD category, resulting in a 4% volume decline in the first nine months of 2017 in North America. Again, rising volatility in global markets and increasing currency headwinds may dampen growth.”
Several other brokerages have also commented on PEP. BidaskClub upgraded Pepsico from a “hold” rating to a “buy” rating in a research report on Thursday, August 17th. Credit Suisse Group lowered Pepsico from an “outperform” rating to a “neutral” rating and reduced their price objective for the company from $126.00 to $124.00 in a research report on Friday, September 8th. Royal Bank Of Canada restated a “hold” rating and set a $115.00 price objective on shares of Pepsico in a research report on Wednesday, September 6th. BMO Capital Markets restated a “hold” rating and set a $120.00 price objective on shares of Pepsico in a research report on Wednesday, September 6th. Finally, Cowen restated a “buy” rating on shares of Pepsico in a research report on Sunday, September 17th. Eight analysts have rated the stock with a hold rating, nine have given a buy rating and one has issued a strong buy rating to the stock. Pepsico currently has a consensus rating of “Buy” and a consensus price target of $121.96.
Pepsico (NYSE:PEP) last issued its earnings results on Wednesday, October 4th. The company reported $1.48 EPS for the quarter, topping the consensus estimate of $1.43 by $0.05. The company had revenue of $16.24 billion during the quarter, compared to analyst estimates of $16.35 billion. Pepsico had a return on equity of 59.68% and a net margin of 10.97%. The business’s revenue was up 1.3% on a year-over-year basis. During the same quarter last year, the firm earned $1.40 EPS. research analysts expect that Pepsico will post 5.22 earnings per share for the current year.
In related news, insider Ramon Laguarta sold 21,449 shares of the business’s stock in a transaction that occurred on Tuesday, October 10th. The stock was sold at an average price of $110.51, for a total transaction of $2,370,328.99. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.26% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the business. Asset Planning Services Ltd. raised its stake in shares of Pepsico by 0.3% in the 2nd quarter. Asset Planning Services Ltd. now owns 1,006 shares of the company’s stock worth $116,000 after buying an additional 3 shares in the last quarter. Accurate Investment Solutions Inc. raised its stake in shares of Pepsico by 0.3% in the 2nd quarter. Accurate Investment Solutions Inc. now owns 1,851 shares of the company’s stock worth $214,000 after buying an additional 5 shares in the last quarter. Northwest Wealth Management LLC raised its stake in shares of Pepsico by 0.4% in the 2nd quarter. Northwest Wealth Management LLC now owns 2,511 shares of the company’s stock worth $290,000 after buying an additional 11 shares in the last quarter. Sunbelt Securities Inc. raised its stake in shares of Pepsico by 0.3% in the 2nd quarter. Sunbelt Securities Inc. now owns 4,682 shares of the company’s stock worth $541,000 after buying an additional 12 shares in the last quarter. Finally, Willingdon Wealth Management raised its stake in shares of Pepsico by 0.3% in the 1st quarter. Willingdon Wealth Management now owns 6,381 shares of the company’s stock worth $714,000 after buying an additional 16 shares in the last quarter. Institutional investors own 70.50% of the company’s stock.
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PepsiCo, Inc is a global food and beverage company. The Company’s portfolio of brands includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. The Company operates through six segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA).
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