PepsiCo Inc. (PEP) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of PepsiCo Inc. (NYSE:PEP) from a hold rating to a buy rating in a research note published on Tuesday. The firm currently has $115.00 target price 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, 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 research firms also recently commented on PEP. Sanford C. Bernstein reissued an outperform rating and set a $118.00 target price on shares of PepsiCo in a research report on Wednesday, August 10th. Morgan Stanley reissued an overweight rating and set a $121.00 target price on shares of PepsiCo in a research report on Friday, September 30th. reissued an outperform rating on shares of PepsiCo in a research report on Monday, August 22nd. Bank of America Corp. reissued a buy rating and set a $120.00 target price on shares of PepsiCo in a research report on Thursday, September 22nd. Finally, Vetr raised shares of PepsiCo from a hold rating to a buy rating and set a $112.11 target price on the stock in a research report on Wednesday, September 7th. Eight equities research 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 stock. PepsiCo presently has an average rating of Buy and a consensus price target of $113.71.
Shares of PepsiCo (NYSE:PEP) opened at 101.7875 on Tuesday. The firm’s 50-day moving average price is $105.13 and its 200 day moving average price is $105.79. PepsiCo has a 52 week low of $93.25 and a 52 week high of $110.94. The firm has a market cap of $145.98 billion, a PE ratio of 22.3316 and a beta of 0.54.
PepsiCo (NYSE:PEP) last posted its earnings results on Thursday, September 29th. The company reported $1.40 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.32 by $0.08. The firm 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 company’s quarterly revenue was down 1.9% compared to the same quarter last year. During the same period in the previous year, the company earned $1.35 earnings per share. Equities analysts anticipate that PepsiCo will post $4.81 EPS for the current year.
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The company also recently declared a quarterly dividend, which will be paid on Friday, January 6th. Stockholders of record on Friday, December 2nd will be issued a $0.7525 dividend. This represents a $3.01 annualized dividend and a dividend yield of 2.94%. The ex-dividend date is Wednesday, November 30th. PepsiCo’s dividend payout ratio (DPR) is 66.01%.
Several institutional investors have recently made changes to their positions in PEP. Wellington Management Group LLP raised its position in shares of PepsiCo by 40.9% in the first quarter. Wellington Management Group LLP now owns 21,691,078 shares of the company’s stock valued at $2,222,902,000 after buying an additional 6,297,861 shares during the period. Bank of Montreal Can bought a new stake in PepsiCo during the second quarter valued at approximately $519,379,000. The Manufacturers Life Insurance Company bought a new stake in PepsiCo during the third quarter valued at approximately $415,795,000. Price T Rowe Associates Inc. MD boosted its stake in PepsiCo by 21.1% in the third quarter. Price T Rowe Associates Inc. MD now owns 21,642,802 shares of the company’s stock valued at $2,354,088,000 after buying an additional 3,773,486 shares in the last quarter. Finally, Emerald Acquisition Ltd. bought a new stake in PepsiCo during the second quarter valued at approximately $370,675,000. 69.19% of the stock is owned by 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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