PepsiCo Inc. (NYSE:PEP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday.

According to Zacks, “PepsiCo reported better-than-expected third-quarter 2016 results, with earnings and revenues beating the Zacks Consensus Estimate. This food/beverage giant raised its full-year earnings growth guidance as well. Solid revenue growth, primarily in Frito-Lay North America and North American beverages, drove its operating leverage. Again, the company recorded over 3% organic volume growth in global snacks and more than 2% organic volume growth in global beverages. The company is on track to deliver $1 billion in productivity savings in 2016 and $7 billion in free cash flow. However, the company’s quarterly revenues dropped annually, marking the eighth straight quarter of revenue decline. 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.”

A number of other equities research analysts have also recently commented on PEP. BMO Capital Markets reissued an “outperform” rating on shares of PepsiCo in a research note on Friday, July 15th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $118.00 price objective on shares of PepsiCo in a research report on Wednesday, August 10th. Credit Agricole SA reaffirmed an “outperform” rating on shares of PepsiCo in a research report on Monday, August 22nd. Vetr raised PepsiCo from a “hold” rating to a “buy” rating and set a $112.11 price objective on the stock in a research report on Wednesday, September 7th. Finally, Credit Suisse Group AG initiated coverage on PepsiCo in a research report on Thursday, September 15th. They set an “outperform” rating and a $121.00 price objective on the stock. Eight investment analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company’s stock. PepsiCo presently has an average rating of “Buy” and a consensus price target of $113.77.

Analyst Recommendations for PepsiCo (NYSE:PEP)

PepsiCo (NYSE:PEP) opened at 101.39 on Friday. PepsiCo has a 12-month low of $93.25 and a 12-month high of $110.94. The firm’s 50-day moving average price is $106.65 and its 200-day moving average price is $105.92. The stock has a market cap of $145.41 billion, a price-to-earnings ratio of 22.24 and a beta of 0.54.

PepsiCo (NYSE:PEP) last released its earnings results on Thursday, September 29th. The company reported $1.40 EPS for the quarter, topping analysts’ consensus estimates of $1.32 by $0.08. PepsiCo had a return on equity of 56.16% and a net margin of 10.74%. The firm had revenue of $16 billion for the quarter. During the same period in the prior year, the company posted $1.35 earnings per share. The company’s revenue was down 1.9% on a year-over-year basis. On average, equities analysts predict that PepsiCo will post $4.81 EPS for the current fiscal year.

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Group LTD boosted its position in PepsiCo by 5.3% in the first quarter. BlackRock Group LTD now owns 12,401,636 shares of the company’s stock valued at $1,270,919,000 after buying an additional 626,205 shares in the last quarter. Clarius Group LLC boosted its position in PepsiCo by 8.1% in the first quarter. Clarius Group LLC now owns 2,345 shares of the company’s stock valued at $240,000 after buying an additional 175 shares in the last quarter. Insight Capital Research & Management Inc. boosted its position in PepsiCo by 0.8% in the first quarter. Insight Capital Research & Management Inc. now owns 22,371 shares of the company’s stock valued at $2,293,000 after buying an additional 175 shares in the last quarter. BlackRock Fund Advisors boosted its position in PepsiCo by 2.8% in the first quarter. BlackRock Fund Advisors now owns 20,058,028 shares of the company’s stock valued at $2,055,547,000 after buying an additional 543,183 shares in the last quarter. Finally, BlackRock Institutional Trust Company N.A. boosted its position in PepsiCo by 0.8% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 38,394,081 shares of the company’s stock valued at $3,934,625,000 after buying an additional 320,953 shares in the last quarter. Institutional investors and hedge funds own 69.99% of the company’s stock.

PepsiCo Company Profile

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.

5 Day Chart for NYSE:PEP

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