Pepsico

PepsiCo’s (PEP) organic sales growth is expected to bottom in Q1 and “rapidly inflect” in the rest of the year back to above consensus forecasts, as well as relative to peers, Morgan Stanley said Monday in a report. The brokerage upgraded its rating on the beverage and snacks company’s stock to overweight from equal-weight and named it as its top pick, both in beverages and overall. PepsiCo replaced Constellation Brands (STZ) as a top pick in beverages and Colgate-Palmolive (CL) as an overall top pick, Morgan Stanley said. Morgan Stanley said it had downgraded PepsiCo’s stock amid concern its valuation was “priced to perfection and consensus/PEP guidance on [organic sales growth] was clearly too high with an unrealistic volume rebound as pricing dissipated.” “Both of these issues have now played out,” the report said. Morgan Stanley’s price target on PepsiCo is $190. The company’s shares rose 3.9% in recent trading […]

By Angela Palumbo PepsiCo stock was rising Monday after a Morgan Stanley analyst upgraded shares of the beverage maker on the belief that it is a solid long-term investment with room for upside from here. Morgan Stanley analyst Dara Mohsenian upgraded shares of PepsiCo to Overweight from Equal Weight with a $190 price target. Mohsenian also named Pepsi as his overall top stock pick. “We would be aggressive buyers here ahead of a powerful inflection in H2 [second half of the year] after PEP bottoms fundamentally in Q1,” Mohsenian wrote in a research note Monday. Shares of PepsiCo were rising 4% to $171.26 on Monday, which would be the stock’s largest percentage increase since Oct. 12, 2022, according to Dow Jones Market Data. The stock has gained 0.9% this year. Shares of competitor Coca-Cola were up 0.6% while Mondelez International rose 1% and Conagra Brands gained 0.4%. The S&P 500

Morgan Stanley analyst Dara Mohsenian upgrades PepsiCo (NASDAQ:PEP) from Equal-Weight to Overweight and announces $190 price target.

PepsiCo, Inc.(NASDAQ:PEP) shares are trading lower on Friday in the premarket session following the fourth quarter and full-year 2023 results. The company reported fourth-quarter FY23 sales of $27.85 billion, missing the analyst consensus estimate of $28.40 billion. Sales declined 0.5% on a year-over-year basis. Operating profits at Quaker Foods North America and PepsiCo Beverages North America fell 79% and 27%, respectively, weighing on quarterly performance. The company reported adjusted EPS of $1.78 in the fourth quarter, beating the street view of $1.72. “Moving forward, we will further sharpen our focus on providing consumers great-tasting products that offer convenience and compelling value,” said Chairman and CEO Ramon Laguarta. Gross profit increased 1.2% year over year to $14.75 billion, while operating profit almost doubled on year to $1.68 billion. “We will also aggressively manage our costs to accelerate productivity, and invest more in our brands, innovation, channel expansion and pep+ transformation,” Laguarta added. As

PepsiCo Sees 2024 Core Constant Currency EPS Up 8% at Least.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our 12-month target by $10 to $200, based on a 2025 P/E of 22.5x, a discount to its 5-year mean forward P/E of 24.4x. We raise our adjusted EPS estimates by $0.05 to $8.15 for ’24 and by $0.15 to $8.90 for ’25. PEP posts Q4 adjusted EPS of $1.78 vs. $1.67 (+9%), six cents ahead of consensus. The beat was driven by a lower-than-expected tax rate, as net revenue fell 0.5% to $27.85B ($520M short of consensus) as volumes fell across both the Convenient Foods (-3%) and Beverages (-2%) categories. Gross margin expanded 90 bps to 53.0% (20 bps below consensus). PEP introduced full year EPS guidance of approximately $8.15, in line with consensus and implying 7% growth from the $7.62 earned in ’23.

PepsiCo’s (PEP) current earnings per share guidance of at least $8.15 for 2024 “has room for upside” as commodity costs normalize and productivity increases, Wedbush said in a note Monday. The firm said it increased its EPS forecast for the food and beverage company to $8.15 from $8.13 and cut its reported revenue estimate to $94.45 billion from $96.40 billion for 2024 to take into account PepsiCo’s updated outlook. For 2025, the firm expects the company to have EPS of $8.87 on revenue of $99.03 billion. “The company should have a path to deliver on their long-term targets coming off three consecutive years of robust top and bottom line growth,” Wedbush said. Wedbush maintained its outperform rating and $195 price target on PepsiCo stock.

PepsiCo (NASDAQ:PEP) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/13/2024 8.85% Barclays $179 → $183 Maintains Overweight 02/12/2024 7.07% RBC Capital → $180 Reiterates Sector Perform → Sector Perform 02/12/2024 15.99% Citigroup $180 → $195 Upgrades Neutral → Buy 02/09/2024 15.99% Wedbush → $195 Reiterates Outperform → Outperform 01/16/2024 6.47% Barclays $181 → $179 Maintains Overweight 12/19/2023 4.69% JP Morgan $185 → $176 Downgrades Overweight → Neutral 11/13/2023 20.75% Jefferies → $203 Initiates Coverage On → Buy 10/19/2023 11.23% DZ Bank → $187 Upgrades Hold → Buy 10/12/2023 7.66% Barclays $179 → $181 Maintains Overweight 10/11/2023 10.04% JP Morgan $188 → $185 Maintains Overweight 10/11/2023 7.07% Citigroup $200 → $180 Maintains Neutral 10/11/2023 13.01% Morgan Stanley $210 → $190 Maintains Equal-Weight 10/11/2023 7.07% RBC Capital → $180 Reiterates Sector Perform → Sector Perform 10/10/2023 15.99% Wedbush → $195 Reiterates Outperform →

PepsiCo (NASDAQ:PEP) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/16/2024 8% Barclays $181 → $179 Maintains Overweight 12/19/2023 6.19% JP Morgan $185 → $176 Downgrades Overweight → Neutral 11/13/2023 22.48% Jefferies → $203 Initiates Coverage On → Buy 10/19/2023 12.83% DZ Bank → $187 Upgrades Hold → Buy 10/12/2023 9.21% Barclays $179 → $181 Maintains Overweight 10/11/2023 11.62% JP Morgan $188 → $185 Maintains Overweight 10/11/2023 8.6% Citigroup $200 → $180 Maintains Neutral 10/11/2023 14.64% Morgan Stanley $210 → $190 Maintains Equal-Weight 10/11/2023 8.6% RBC Capital → $180 Reiterates Sector Perform → Sector Perform 10/10/2023 17.65% Wedbush → $195 Reiterates Outperform → Outperform 10/09/2023 17.65% Wedbush $206 → $195 Maintains Outperform 10/09/2023 2.57% Wells Fargo $196 → $170 Maintains Equal-Weight 10/04/2023 8% Barclays $198 → $179 Maintains Overweight 07/17/2023 26.7% Morgan Stanley → $210 Downgrades Overweight → Equal-Weight 07/14/2023 17.65% Evercore

Barclays analyst Lauren Lieberman maintains PepsiCo (NASDAQ:PEP) with a Overweight and lowers the price target from $181 to $179.

PepsiCo (NASDAQ:PEP) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 12/19/2023 4.82% JP Morgan $185 → $176 Downgrades Overweight → Neutral 11/13/2023 20.91% Jefferies → $203 Initiates Coverage On → Buy 10/19/2023 11.38% DZ Bank → $187 Upgrades Hold → Buy 10/12/2023 7.8% Barclays $179 → $181 Maintains Overweight 10/11/2023 10.18% JP Morgan $188 → $185 Maintains Overweight 10/11/2023 7.21% Citigroup $200 → $180 Maintains Neutral 10/11/2023 13.16% Morgan Stanley $210 → $190 Maintains Equal-Weight 10/11/2023 7.21% RBC Capital → $180 Reiterates Sector Perform → Sector Perform 10/10/2023 16.14% Wedbush → $195 Reiterates Outperform → Outperform 10/09/2023 16.14% Wedbush $206 → $195 Maintains Outperform 10/09/2023 1.25% Wells Fargo $196 → $170 Maintains Equal-Weight 10/04/2023 6.61% Barclays $198 → $179 Maintains Overweight 07/17/2023 25.07% Morgan Stanley → $210 Downgrades Overweight → Equal-Weight 07/14/2023 16.14% Evercore ISI Group $190 → $195 Maintains In-Line 07/14/2023

JPMorgan analyst Andrea Teixeira downgrades PepsiCo (NASDAQ:PEP) from Overweight to Neutral and lowers the price target from $185 to $176.