In a report released today, Dara Mohsenian from Morgan Stanley maintained a Hold rating on PepsiCo, with a price target of $165.00.
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Dara Mohsenian has given his Hold rating due to a combination of factors that reflect both positive and challenging aspects of PepsiCo’s current financial situation. The recent quarterly results showed improvement with better-than-expected performance across various financial metrics, including topline, operating profit, and EPS. Additionally, PepsiCo raised its full-year EPS guidance, aided by favorable foreign exchange rates, and demonstrated a significant increase in productivity. These factors indicate improved earnings visibility for the company.
However, despite these positive developments, Mohsenian remains cautious due to ongoing challenges in the U.S. market, where topline growth remains subdued. Although there is solid international growth, the U.S. market’s performance has not been as strong, which tempers the overall outlook. Furthermore, with the stock already experiencing a significant rise from its previous lows, the potential for further upside may be limited. As a result, Mohsenian maintains a Hold rating, reflecting a balanced view of the company’s prospects.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $150.00 price target.