Barclays Maintains an 'Overweight' on PepsiCo (PEP); One Door Closes, Another One Opens
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Price: $143.48 +0.99%
Rating Summary:
15 Buy, 20 Hold, 0 Sell
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
15 Buy, 20 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on PepsiCo (NYSE: PEP) price target of $69.00.
Barclays analyst says, "Following 3Q11 results that were better than most had feared, PepsiCo management hosted one of its strongest conference calls in recent memory: focusing on what it will take to get its underlying business on the right track, addressing head-on speculation about a business separation, and opening the door for further restructuring/productivity to fund a significant step up in brand marketing and innovation with a potential earnings rebase in early December."
"We are flowing through the EPS beat and raising our 2011 EPS forecast to $4.42. Our 2012 estimate is unchanged at $4.45, and is inclusive of a potential profit reset primarily (but not exclusively) for the core beverage business. We are also adding PEP back to our Barclays US Staples "Favorites" List, which is now BEAM (Nasdaq: BEAM), ConAgra (NYSE: CAG), El Paso (NYSE: EL), PEP, Philip Morris (NYSE: PM), Kraft (NYSE: KFT), Coca-Cola (NYSE: KO), Int'l Flavors & Fragrances (NYSE: IFF) (vs. BEAM, CAG, EL, KO, PM, KFT, IFF, previously)."
For more ratings news on Pepsico click here and for the rating history of Pepsico click here.
Shares of Pepsico closed at $62.70 yesterday.
Barclays analyst says, "Following 3Q11 results that were better than most had feared, PepsiCo management hosted one of its strongest conference calls in recent memory: focusing on what it will take to get its underlying business on the right track, addressing head-on speculation about a business separation, and opening the door for further restructuring/productivity to fund a significant step up in brand marketing and innovation with a potential earnings rebase in early December."
"We are flowing through the EPS beat and raising our 2011 EPS forecast to $4.42. Our 2012 estimate is unchanged at $4.45, and is inclusive of a potential profit reset primarily (but not exclusively) for the core beverage business. We are also adding PEP back to our Barclays US Staples "Favorites" List, which is now BEAM (Nasdaq: BEAM), ConAgra (NYSE: CAG), El Paso (NYSE: EL), PEP, Philip Morris (NYSE: PM), Kraft (NYSE: KFT), Coca-Cola (NYSE: KO), Int'l Flavors & Fragrances (NYSE: IFF) (vs. BEAM, CAG, EL, KO, PM, KFT, IFF, previously)."
For more ratings news on Pepsico click here and for the rating history of Pepsico click here.
Shares of Pepsico closed at $62.70 yesterday.
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