PepsiCo Inc. (NYSE:PEP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday. The brokerage presently has a $116.00 price objective on the stock. Zacks Investment Research’s target price suggests a potential upside of 13.89% from the stock’s current price.

According to Zacks, “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.  That said, 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.”

PEP has been the subject of several other reports. Bank of America Corp. restated a “buy” rating and set a $120.00 price objective on shares of PepsiCo in a research note on Friday, September 30th. Deutsche Bank AG restated a “buy” rating and set a $120.00 price objective on shares of PepsiCo in a research note on Monday, October 3rd. BMO Capital Markets restated an “outperform” rating and set a $120.00 price objective (up from $116.00) on shares of PepsiCo in a research note on Friday, September 30th. Credit Suisse Group AG restated a “buy” rating and set a $122.00 price objective on shares of PepsiCo in a research note on Friday, September 30th. Finally, Jefferies Group restated a “buy” rating and set a $122.00 price objective (down from $124.00) on shares of PepsiCo in a research note on Friday, September 30th. Eight investment analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus target price of $113.77.

Analyst Recommendations for PepsiCo (NYSE:PEP)

PepsiCo (NYSE:PEP) opened at 101.85 on Monday. The stock has a market capitalization of $146.07 billion, a PE ratio of 22.35 and a beta of 0.54. The company’s 50-day moving average is $106.65 and its 200 day moving average is $105.92. PepsiCo has a 1-year low of $93.25 and a 1-year high of $110.94.

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

Large investors have recently made changes to their positions in the stock. King Wealth Management Group LLC boosted its stake in shares of PepsiCo by 2.5% in the first quarter. King Wealth Management Group LLC now owns 38,735 shares of the company’s stock valued at $3,970,000 after buying an additional 947 shares in the last quarter. Investec Asset Management North America Inc. raised its position in shares of PepsiCo by 40.1% in the first quarter. Investec Asset Management North America Inc. now owns 23,307 shares of the company’s stock valued at $2,389,000 after buying an additional 6,673 shares in the last quarter. Ropes Wealth Advisors LLC raised its position in shares of PepsiCo by 17.4% in the first quarter. Ropes Wealth Advisors LLC now owns 36,415 shares of the company’s stock valued at $3,732,000 after buying an additional 5,405 shares in the last quarter. Burgundy Asset Management Ltd. raised its position in shares of PepsiCo by 1.4% in the first quarter. Burgundy Asset Management Ltd. now owns 2,467,382 shares of the company’s stock valued at $252,857,000 after buying an additional 35,072 shares in the last quarter. Finally, LVW Advisors LLC raised its position in shares of PepsiCo by 6.4% in the first quarter. LVW Advisors LLC now owns 28,216 shares of the company’s stock valued at $2,892,000 after buying an additional 1,706 shares in the last quarter. 69.99% of the stock is owned by hedge funds and other institutional investors.

About PepsiCo

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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