PREVIEW: PepsiCo revs look nearly flat to analysts
Repeats Buzz published on Wednesday with no changes
** PepsiCo PEP.O shares up 0.7% to $163.06 on Weds ahead of Q2 results due before the bell on Thurs as investors focus on lukewarm consumer demand
** Soda and snacks maker expected to report rev of $22.57 bln, up ~1% yr/yr, and adj EPS of $2.16 vs $2.09 a yr-ago, LSEG data shows
** Co in last qtrly report said international demand drove growth, while U.S. customers cut back on its pricey products due to strained budgets
** Several brokerages cut their PTs recently, including Wells Fargo, Jefferies and TD Cowen
** BofA Global Research carved its PT by $20 to $190
** Ongoing weakness in food and beverage businesses "could put PEP in a position of choosing between stretching to hit earnings targets or taking a breather to avoid exasperating the issues by cutting costs too far", BofA said in preview note on Mon
** 12 of 25 analysts rate PEP "strong buy" or "buy", 12 have "hold", while 1 recommends "sell" and their median PT is $184
** PEP shares now down 4% YTD vs ~8% gain for S&P 500 Consumer Staples .SPLRCS sector. Stock now trading at 19x forward earnings vs five-year avg of ~23x - LSEG
** Meanwhile, shares of rival Coca-Cola KO.N flat on Weds though up >6% in 2024. Its stock is trading at 21.5x forward earnings vs five-year avg just north of 23x
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
</body></html>Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
