BMO Capital Reiterates Outperform on Pepsi (PEP) Following Solid 3Q

September 30, 2016 11:35 AM EDT
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Price: $105.62 -0.24%

Rating Summary:
    13 Buy, 11 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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BMO Capital reiterated an Outperform rating on Pepsico (NYSE: PEP), and raised the price target to $120.00 (from $116.00), following the company's 3Q earnings report. PEP exceeded or met consensus estimates for the 27th consecutive quarter. EPS was driven by solid organic sales growth, modest EBIT margin expansion, and lower tax rate.

Analyst Amit Sharma commented, "PEP reported 3Q16 core EPS of $1.40, $0.08 ahead of our and consensus estimates, as solid revenue growth, particularly in FLNA/ NAB, drove favorable operating leverage. PEP's earnings momentum is poised to continue, reflecting broad-based sales growth, further SG&A leverage, and greater visibility to cost savings. PEP raised 2016 EPS outlook from $4.71 to $4.78."

For an analyst ratings summary and ratings history on Pepsico click here. For more ratings news on Pepsico click here.

Shares of Pepsico closed at $107.76 yesterday.

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