Jefferies analyst, Kevin Grundy, expects a relatively in-line 2Q, including ~3.5% org sales growth, when Pepsico (NYSE: PEP) kicks-off earnings on 7/7. EM volatility remains, though productivity savings provides scope for a raise to FY16 EPS guide from +8% (i.e. he sees ~2-4 pts in underlying flex) and the f-cast calls for a 2 pt FX headwind (vs. PEP's 4 pt guide). NAB likely to underwhelm in 2Q, though PEP has ample flex and stock looks attractive with bevs biz at implied 10.5x EV/EBITDA vs. 14.5x group avg.

No change to Buy rating or price target of $119.00

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 $105.63 yesterday.