Zacks Reaffirms Neutral Rating for PepsiCo (PEP)
PepsiCo (NYSE:PEP)‘s stock had its “neutral” rating reiterated by Zacks in a research report issued on Friday. They currently have a $97.00 price objective on the stock. Zacks‘s target price would indicate a potential upside of 5.38% from the company’s current price.
Zacks’ analyst wrote, “Pepsi began 2014 on a solid note beating the Zacks Consensus Estimate for both earnings and revenues in the first two quarters. Moreover, earnings increased 1% year over year in the second quarter driven by strong organic revenue gains and solid margins. Organic revenues increased 3.4% as improved beverage volumes, strong global snacks performance and sales gain in developing/emerging market offset a mild slowdown in Europe. Overall, we are encouraged by the company’s strong brand portfolio, product and geographic diversity, improved productivity, increased brand building investments and market execution, efforts to innovate and solid cash flow generation. Also, the company’s plan to substantially increase shareholders return in 2014 and extend productivity initiatives are encouraging. However, challenging consumer spending environment and continued sluggish volumes in the North American beverage business keep us on the sidelines.”
A number of other firms have also recently commented on PEP. Analysts at Argus raised their price target on shares of PepsiCo from $98.00 to $104.00 in a research note on Thursday, August 14th. They now have a “buy” rating on the stock. Separately, analysts at S&P Equity Research raised their price target on shares of PepsiCo from $4.32 to $2,491.00 in a research note on Monday, August 11th. They now have a “buy” rating on the stock. Finally, analysts at Nomura initiated coverage on shares of PepsiCo in a research note on Tuesday, August 5th. They set a “reduce” rating and a $81.00 price target on the stock. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and eleven have given a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average target price of $244.69.
Shares of PepsiCo (NYSE:PEP) traded down 0.12% during mid-day trading on Friday, hitting $91.94. The stock had a trading volume of 2,087,971 shares. PepsiCo has a 52-week low of $77.01 and a 52-week high of $93.19. The stock has a 50-day moving average of $90.49 and a 200-day moving average of $85.79. The company has a market cap of $138.5 billion and a price-to-earnings ratio of 20.77. PepsiCo also was the target of some unusual options trading activity on Thursday. Investors acquired 8,750 call options on the company. This is an increase of 171% compared to the average volume of 3,232 call options.
PepsiCo (NYSE:PEP) last issued its quarterly earnings data on Wednesday, July 23rd. The company reported $1.32 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.23 by $0.09. The company had revenue of $16.89 billion for the quarter, compared to the consensus estimate of $16.79 billion. During the same quarter in the prior year, the company posted $1.31 earnings per share. The company’s quarterly revenue was up .5% on a year-over-year basis. Analysts expect that PepsiCo will post $4.59 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, September 30th. Shareholders of record on Friday, September 5th will be paid a dividend of $0.655 per share. This represents a $2.62 annualized dividend and a dividend yield of 2.85%. The ex-dividend date of this dividend is Wednesday, September 3rd.
PepsiCo, Inc (NYSE:PEP) is a global food and beverage company.
To view Zacks’ full report, visit Zacks’ official website.
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