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 note issued to investors on Tuesday. The brokerage presently has a $115.00 target price on the stock. Zacks Investment Research’s price target indicates a potential upside of 11.67% from the company’s current price.
According to Zacks, “Pepsi has been doing well on the back of significant innovation, continued momentum in Frito-Lay business, revenue management strategies, improved productivity and better market execution. Moreover, Pepsi has been seeing higher volumes and profits in the North American segments due to an improving economy, better industry pricing dynamics and a consistency in positive innovation. We believe that Pepsi’ new product lineup, aggressive marketing efforts, productivity improvement and cost-saving initiatives should drive profits. Pepsi rolled out several products recently which management believes will drive sales and profits in the remainder of 2016. That said, growing health awareness has been hurting the CSD category, resulting in a 3% volume decline in the first three quarters of 2016. Again, rising volatility in global markets and increasing currency headwind may dampen growth, going forward.”
Several other equities research analysts also recently commented on PEP. Vetr upgraded PepsiCo from a “buy” rating to a “strong-buy” rating and set a $113.72 target price on the stock in a report on Tuesday, November 15th. Deutsche Bank AG reiterated a “buy” rating and set a $120.00 target price on shares of PepsiCo in a report on Monday, October 3rd. Morgan Stanley reiterated an “overweight” rating and set a $121.00 target price on shares of PepsiCo in a report on Friday, September 30th. BMO Capital Markets reiterated an “outperform” rating and set a $120.00 target price (up from $116.00) on shares of PepsiCo in a report on Friday, September 30th. Finally, Bank of America Corp. reiterated a “buy” rating and set a $120.00 target price on shares of PepsiCo in a report on Friday, September 30th. Eight research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock has an average rating of “Buy” and a consensus target price of $113.71.
Shares of PepsiCo (NYSE:PEP) traded down 0.36% during midday trading on Tuesday, reaching $102.42. The company’s stock had a trading volume of 2,374,546 shares. The firm has a market capitalization of $146.89 billion, a PE ratio of 22.47 and a beta of 0.54. The company’s 50-day moving average price is $105.13 and its 200 day moving average price is $105.79. PepsiCo has a 1-year low of $93.25 and a 1-year high of $110.94.
PepsiCo (NYSE:PEP) last released its quarterly earnings data on Thursday, September 29th. The company reported $1.40 EPS for the quarter, topping analysts’ consensus estimates of $1.32 by $0.08. The company had revenue of $16 billion for the quarter. PepsiCo had a return on equity of 56.16% and a net margin of 10.74%. The business’s revenue for the quarter was down 1.9% compared to the same quarter last year. During the same quarter last year, the business earned $1.35 earnings per share. On average, equities research analysts forecast that PepsiCo will post $4.81 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, January 6th. Shareholders of record on Friday, December 2nd will be paid a dividend of $0.7525 per share. This represents a $3.01 annualized dividend and a yield of 2.92%. The ex-dividend date of this dividend is Wednesday, November 30th. PepsiCo’s payout ratio is currently 66.01%.
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A number of hedge funds have recently made changes to their positions in PEP. Itau Unibanco Holding S.A. purchased a new stake in PepsiCo during the third quarter worth approximately $101,000. D. Scott Neal Inc. increased its stake in PepsiCo by 8.1% in the second quarter. D. Scott Neal Inc. now owns 944 shares of the company’s stock worth $100,000 after buying an additional 71 shares in the last quarter. Delphi Private Advisors LLC increased its stake in PepsiCo by 1.3% in the second quarter. Delphi Private Advisors LLC now owns 1,002 shares of the company’s stock worth $106,000 after buying an additional 13 shares in the last quarter. Piershale Financial Group Inc. increased its stake in PepsiCo by 0.4% in the second quarter. Piershale Financial Group Inc. now owns 1,005 shares of the company’s stock worth $106,000 after buying an additional 4 shares in the last quarter. Finally, Global X Management Co. LLC increased its stake in PepsiCo by 92.1% in the second quarter. Global X Management Co. LLC now owns 1,101 shares of the company’s stock worth $117,000 after buying an additional 528 shares in the last quarter. 69.19% of the stock is currently owned by hedge funds and other institutional investors.
PepsiCo, Inc is a food and beverage company. The Company, through its operations, bottlers, contract manufacturers and other third parties, is engaged in making, marketing, distributing and selling a range of beverages, foods and snacks, serving in over 200 countries and territories. The Company operates through six segments, namely, Frito-Lay North America (FLNA); Quaker Foods North America (QFNA); North America Beverages (NAB); Latin America, which includes its beverage, food and snack businesses in Latin America; Europe Sub-Saharan Africa (ESSA), which includes its beverage, food and snack businesses in Europe and Sub-Saharan Africa, and Asia, Middle East and North Africa (AMENA), which includes its beverage, food and snack businesses in Asia, Middle East and North Africa.
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