PepsiCo Q3 report ‘very much in line’ with expectations, says Barclays

Barclays thinks PepsiCo’s Q3 results and updated outlook “will prove very much in line with what the market expected to see” – softer sales and a lowered outlook for revenue growth this year, coupled with the company holding the earnings forecast thanks to productivity and cost control. The Frito-Lay North America result will prove a bit better “than the most dire scenario” and the word choices around “discipline” and “responsible” investments in the prepared remarks make it clear that PepsiCo “does not see going nuclear on pricing as the solution to sluggish volume trends,” the analyst tells investors in a research note. Barclays has an Overweight rating on PepsiCo with a $186 price target