PepsiCo Inc. (PEP) Upgraded by Zacks Investment Research to “Buy”
Zacks Investment Research upgraded shares of PepsiCo Inc. (NYSE:PEP) from a hold rating to a buy rating in a research report sent to investors on Tuesday. They currently have $115.00 price target on the stock.
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 and increasing currency headwind may dampen growth, going forward.”
Several other analysts also recently weighed in on the company. Vetr upgraded PepsiCo from a buy rating to a strong-buy rating and set a $113.72 target price for the company in a research note on Tuesday, November 15th. Deutsche Bank AG restated a buy rating and set a $120.00 target price on shares of PepsiCo in a research note on Monday, October 3rd. Morgan Stanley restated an overweight rating and set a $121.00 target price on shares of PepsiCo in a research note on Friday, September 30th. BMO Capital Markets restated an outperform rating and set a $120.00 target price (up from $116.00) on shares of PepsiCo in a research note on Friday, September 30th. Finally, Bank of America Corp. reiterated a buy rating and issued a $120.00 price target on shares of PepsiCo in a research note on Friday, September 30th. Eight equities research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company. The company has a consensus rating of Buy and a consensus price target of $113.71.
PepsiCo (NYSE:PEP) traded down 1.01% during trading on Tuesday, reaching $101.85. The company’s stock had a trading volume of 1,398,089 shares. The stock has a market capitalization of $146.07 billion, a price-to-earnings ratio of 22.35 and a beta of 0.54. The firm has a 50 day moving average of $105.51 and a 200 day moving average of $105.87. PepsiCo has a 52 week low of $93.25 and a 52 week high of $110.94.
PepsiCo (NYSE:PEP) last announced its earnings results on Thursday, September 29th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.08. The company earned $16 billion during the quarter. PepsiCo had a return on equity of 56.16% and a net margin of 10.74%. The firm’s revenue was down 1.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.35 earnings per share. Analysts expect that PepsiCo will post $4.81 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 6th. Investors of record on Friday, December 2nd will be paid a $0.7525 dividend. This represents a $3.01 annualized dividend and a dividend yield of 2.93%. The ex-dividend date is Wednesday, November 30th. PepsiCo’s payout ratio is presently 66.01%.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PEP. Fairfield Bush & CO. raised its position in PepsiCo by 9.5% in the first quarter. Fairfield Bush & CO. now owns 53,048 shares of the company’s stock worth $5,436,000 after buying an additional 4,597 shares in the last quarter. Parametric Risk Advisors LLC raised its position in PepsiCo by 128.5% in the first quarter. Parametric Risk Advisors LLC now owns 106,723 shares of the company’s stock worth $10,937,000 after buying an additional 60,020 shares in the last quarter. AXA raised its position in PepsiCo by 7.7% in the first quarter. AXA now owns 1,401,021 shares of the company’s stock worth $143,577,000 after buying an additional 99,785 shares in the last quarter. Pictet Asset Management Ltd. raised its position in PepsiCo by 14.0% in the first quarter. Pictet Asset Management Ltd. now owns 1,216,274 shares of the company’s stock worth $118,976,000 after buying an additional 149,187 shares in the last quarter. Finally, Scotia Capital Inc. raised its position in PepsiCo by 11.2% in the first quarter. Scotia Capital Inc. now owns 260,896 shares of the company’s stock worth $26,746,000 after buying an additional 26,326 shares in the last quarter. 69.57% of the stock is owned by hedge funds and other institutional investors.
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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.
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