Upgrade to SI Premium - Free Trial

UBS Raises Price target on Pepsi (PEP) Following 3Q EPS Beat

October 7, 2015 8:27 AM

UBS reiterated a Buy rating on Pepsico (NYSE: PEP), and raised the price target to $108.00 (from $107.00), following the company's 3Q15 earnings results. PEP reported $1.35 in adjusted EPS vs. consensus of $1.26.

Analyst Stephen Powers commented, "PEP delivered another beat in Q3, reporting $1.35 in adjusted EPS vs. UBSe of $1.29 and cons. of $1.26, and raised 2015 guidance for the 3rd time this year to +9% FXneutral EPS growth (+8% prior). The beat was driven by strong gross margin expansion (+118 bps vs. UBSe of +25 bps) on the back of fixed cost leverage, productivity savings, and COGS deflation. Organic growth accelerated to +7% (vs. UBSe of +5.4%), due largely to inflationary pricing in LatAm/VZ (+31% vs. UBSe of +15%) and solid NAB volume growth (+3% vs. UBSe of -0.5%)—attributed to non-CSDs strength by PEP."

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 $97.07 yesterday.


Analyst Comments Analyst EPS Change Analyst EPS View Analyst PT Change

Next Articles