Pepsico, Inc. (PEP) Upgraded to “Buy” at Zacks Investment Research
Pepsico, Inc. (NYSE:PEP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The brokerage presently has a $123.00 price target on the stock. Zacks Investment Research‘s target price would suggest a potential upside of 12.18% from the company’s current price.
According to Zacks, “PepsiCo reported mixed third-quarter 2017 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Nonetheless, this is the sixth consecutive quarter of positive earnings surprise. On a year-over-year basis, core earnings and revenues grew 6% and 1.3%, respectively. 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. Revenues increased 1.7% on an organic basis, primarily driven by higher demand for beverages/food/snacks in the Asia, Middle East and North Africa, Europe Sub-Saharan Africa and Latin America segments. Total volumes however declined 1% during the quarter against flat growth in the previous quarter. Core gross margins also contracted 15 basis points.”
Other equities analysts have also issued reports about the stock. BidaskClub raised shares of Pepsico from a “hold” rating to a “buy” rating in a research report on Thursday, August 17th. Susquehanna Bancshares Inc reissued a “positive” rating and set a $133.00 price target (down from $134.00) on shares of Pepsico in a research report on Thursday, July 6th. Credit Suisse Group raised their price target on shares of Pepsico from $124.00 to $126.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 12th. Jefferies Group LLC lowered shares of Pepsico from a “buy” rating to a “hold” rating and reduced their price target for the stock from $133.00 to $108.00 in a research report on Monday, October 2nd. Finally, J P Morgan Chase & Co reissued an “overweight” rating on shares of Pepsico in a research report on Wednesday, July 12th. Seven investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus target price of $121.35.
Pepsico (PEP) traded up 0.42% on Tuesday, hitting $110.11. 2,011,603 shares of the stock traded hands. The company has a market capitalization of $156.59 billion, a PE ratio of 22.75 and a beta of 0.68. The firm has a 50-day moving average price of $111.97 and a 200-day moving average price of $114.69. Pepsico has a 12 month low of $98.50 and a 12 month high of $119.39.
Pepsico (NYSE:PEP) last released its earnings results on Wednesday, October 4th. The company reported $1.48 EPS for the quarter, topping analysts’ consensus estimates of $1.43 by $0.05. The company had revenue of $16.24 billion during the quarter, compared to analysts’ expectations of $16.35 billion. Pepsico had a net margin of 10.97% and a return on equity of 59.68%. Pepsico’s revenue for the quarter was up 1.3% on a year-over-year basis. During the same period last year, the business earned $1.40 EPS. Analysts forecast that Pepsico will post $5.22 earnings per share for the current year.
In other Pepsico news, insider Ramon Laguarta sold 21,449 shares of Pepsico stock in a transaction on Tuesday, October 10th. The shares were sold at an average price of $110.51, for a total transaction of $2,370,328.99. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, SVP Marie T. Gallagher sold 41,489 shares of Pepsico stock in a transaction on Monday, August 7th. The stock was sold at an average price of $116.77, for a total transaction of $4,844,670.53. Following the sale, the senior vice president now directly owns 76,037 shares in the company, valued at approximately $8,878,840.49. The disclosure for this sale can be found here. 0.26% of the stock is currently owned by insiders.
A number of institutional investors and hedge funds have recently made changes to their positions in the business. Barnett & Company Inc. boosted its position in shares of Pepsico by 270.4% during the 2nd quarter. Barnett & Company Inc. now owns 900 shares of the company’s stock valued at $104,000 after acquiring an additional 657 shares during the last quarter. Aviance Capital Management LLC acquired a new position in shares of Pepsico during the 2nd quarter valued at about $111,000. Asset Planning Services Ltd. boosted its position in shares of Pepsico by 0.3% during the 2nd quarter. Asset Planning Services Ltd. now owns 1,006 shares of the company’s stock valued at $116,000 after acquiring an additional 3 shares during the last quarter. Patriot Financial Group Insurance Agency LLC boosted its position in shares of Pepsico by 5.9% during the 2nd quarter. Patriot Financial Group Insurance Agency LLC now owns 1,211 shares of the company’s stock valued at $138,000 after acquiring an additional 67 shares during the last quarter. Finally, Riggs Asset Managment Co. Inc. boosted its position in shares of Pepsico by 14.9% during the 1st quarter. Riggs Asset Managment Co. Inc. now owns 1,270 shares of the company’s stock valued at $142,000 after acquiring an additional 165 shares during the last quarter. 70.53% of the stock is currently owned by institutional investors.
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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