“PEP’s US trends show improvement in beverages (vol/price for CSDs, vol for non-CSDs) and some deceleration (vol) in snacks – i.e., very much the opposite of a typical PEP qtr. QFNA worsened. Certainly the improved pricing in drinks is a plus, but we think net sentiment could be hurt if Frito is indeed slowing (is it a category issue? rising direct and indirect competition?). That uncertainty coupled with the somewhat unexpected CEO change, could put pressure on the stock. Still, the valuation may buffer that downside. Over the last three months, PEP has slightly underperformed the consumer staples group (+2% vs. +5%); it trades at 18.5x CY19 vs. 20.6 for KO and 19.3x for KDP (S5CONS 1yF is 17.9x).”
According to TipRanks.com, Zuanic is a 4-star analyst with an average return of 5.3% and a 47.2% success rate. Zuanic covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners, Constellation Brands Inc, and Anheuser-Busch Inbev Sa.
PepsiCo has an analyst consensus of Moderate Buy, with a price target consensus of $118.50, representing a 6.2% upside. In a report released today, Macquarie also maintained a Buy rating on the stock with a $122 price target.
PepsiCo’s market cap is currently $157.1B and has a P/E ratio of 34.60. The company has a Price to Book ratio of 15.54.
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