Market Overview

UPDATE: UBS Initiates Coverage on Pepsico, Inc. at Neutral, Sets $85 Target

Share:
Related PEP
Instant Replay? January Appears To Be Back On Wall Street Amid Fierce Rally
Earnings Preview: How Is Coca-Cola Battling 12 Years Of Falling Soda Sales?
PepsiCo: Revenues Fizzle But Dividends Shine (Seeking Alpha)

UBS initiated coverage on PepsiCo (NYSE: PEP) with a Neutral rating and an $85 price target on Tuesday. Analyst Stephen Powers thinks a turnaround of the U.S. beverage business will “likely take a while, cost a lot, and may be difficult to achieve.”

Snacks remain Pepsi's best division and “has been an outsized driver of incremental profit expansion due to strong top- and bottom-line growth,” said Powers. International snacks margins “might someday emulate the North American margin structure, but that day is likely far away due to investments required,” said the analyst.

Shares of PepsiCo are up 0.9 percent to $80.25.

Latest Ratings for PEP

DateFirmActionFromTo
Feb 2018Evercore ISI GroupDowngradesOutperformIn-Line
Feb 2018JP MorganMaintainsOverweightOverweight
Jan 2018SunTrust Robinson HumphreyInitiates Coverage OnHold

View More Analyst Ratings for PEP
View the Latest Analyst Ratings

Posted-In: Analyst Color News Price Target Initiation Analyst Ratings

 

Related Articles (PEP)

View Comments and Join the Discussion!