Zacks Reiterates Neutral Rating for PepsiCo (PEP)

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PepsiCo (NYSE:PEP)‘s stock had its “neutral” rating reaffirmed by Zacks in a research note issued to investors on Tuesday. They currently have a $90.00 price objective on the stock. Zacks‘s target price would indicate a potential upside of 4.53% from the company’s current price.

Zacks’ analyst wrote, “Pepsi began 2014 on a solid note beating the Zacks Consensus Estimate for both earnings and revenues in the first quarter. Moreover, earnings increased 7% year over year driven by strong organic revenue gains and solid margins. Organic revenues increased 4.0% as better volumes, strong snacks performance, improvement in Europe and sales gain in developing/emerging market offset a softer beverage performance. Overall, we are encouraged by the company’s strong brand portfolio, its product and geographic diversity, improved productivity, increased brand building investments and market execution, efforts to innovate and solid cash flow generation. Also, the company’s plan to substantially increase shareholders returns in 2014 and extend productivity initiatives is encouraging. However, challenging consumer spending environment and continued sluggish volumes in the North American beverage business keep us on the sidelines.”

PEP has been the subject of a number of other recent research reports. Analysts at S&P Equity Research downgraded shares of PepsiCo to a “hold” rating in a research note on Thursday, April 24th. Separately, analysts at Citigroup Inc. reiterated a “neutral” rating on shares of PepsiCo in a research note on Monday, April 21st. They now have a $92.00 price target on the stock. Finally, analysts at Barclays reiterated an “overweight” rating on shares of PepsiCo in a research note on Monday, April 21st. They now have a $91.00 price target on the stock. Eight research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The stock presently has an average rating of “Buy” and an average target price of $92.09.

Shares of PepsiCo (NYSE:PEP) traded down 0.33% on Tuesday, hitting $85.82. The stock had a trading volume of 460,093 shares. PepsiCo has a 52 week low of $77.01 and a 52 week high of $87.68. The stock’s 50-day moving average is $85.25 and its 200-day moving average is $82.97. The company has a market cap of $130.1 billion and a P/E ratio of 19.45. PepsiCo also was the target of unusually large options trading activity on Wednesday. Stock investors acquired 4,113 put options on the stock. This represents an increase of approximately 143% compared to the average daily volume of 1,692 put options.

PepsiCo (NYSE:PEP) last announced its earnings results on Thursday, April 17th. The company reported $0.83 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.75 by $0.08. The company had revenue of $12.62 billion for the quarter, compared to the consensus estimate of $12.43 billion. During the same quarter last year, the company posted $0.77 earnings per share. PepsiCo’s revenue was up .3% compared to the same quarter last year. On average, analysts predict that PepsiCo will post $4.54 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which is scheduled for Monday, June 30th. Stockholders of record on Friday, June 6th will be paid a dividend of $0.655 per share. This represents a $2.62 annualized dividend and a dividend yield of 3.04%. The ex-dividend date is Wednesday, June 4th. This is a boost from PepsiCo’s previous quarterly dividend of $0.57.

PepsiCo, Inc (NYSE:PEP) is a global food and beverage company.

To view Zacks’ full report, visit Zacks’ official website.

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