PepsiCo, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Dara Mohsenian from Morgan Stanley maintained a Hold rating on the stock and has a $165.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Dara Mohsenian has given his Hold rating due to a combination of factors affecting PepsiCo’s current and future performance. The company reported a low-quality third-quarter earnings per share upside, which was not well-received due to misses in organic sales growth and gross margin. However, there is optimism about improving trends moving forward, as indicated by management’s positive commentary on future outlooks.
Despite the challenges, such as weak trends in the US snacks category and structural brand equity issues in North American beverages, there are some positive developments. The appointment of a new CFO, Steve Schmitt, is seen as a potential catalyst for change due to his strong background and outsider status. Additionally, the company’s valuation appears undemanding, and there are aggressive management plans following activist involvement. Nevertheless, sustained challenges remain, leading to the decision to maintain an Equal-weight rating until more evidence of a turnaround is observed.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $154.00 price target.
PEP’s price has also changed slightly for the past six months – from $145.590 to $144.710, which is a -0.60% drop .