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Stephen Powers Is Bullish On PepsiCo

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Stephen Powers of UBS said on CNBC's Fast Money that he has a Buy rating on PepsiCo (NYSE: PEP) with a price target of $100.

He explained that the first half of this year has shown the evidence that PepsiCo has turned a corner. The company has a lot of strength in its North American business and in international snacks business.

Powers thinks that the momentum in the North American beverage business is building through productivity efforts, which will be visible in the bottom line instead of the top line. He also believes that Nelson Peltz's efforts are going to be crucial for the performance of this stock and he sees his presence as a positive pressure on the board to keep up the performance.

PepsiCo had a good year-to-date in comparison with The Coca-Cola Company (NYSE: KO) added Powers. He believes that investors stand a better chance with Pepsi than with Coke because Pepsi is creating opportunities for itself independent of the environment in which it is operating. He thinks Coke is playing the same cards that it has been playing for years and in environment that is getting tougher it is hard to see how the stock breaks out.

Latest Ratings for PEP

DateFirmActionFromTo
Sep 2014Cowen & CompanyInitiates Coverage onOutperform
Aug 2014UBSUpgradesNeutralBuy
Aug 2014NomuraInitiates Coverage onReduce

View More Analyst Ratings for PEP
View the Latest Analyst Ratings

Posted-In: Stephen PowersAnalyst Color CNBC Long Ideas Fast Money Analyst Ratings Media Trading Ideas

 

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