TD Cowen analyst Robert Moskow has maintained their neutral stance on PEP stock, giving a Hold rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Robert Moskow has given his Hold rating due to a combination of factors, primarily centered around PepsiCo’s recent performance and strategic initiatives. Despite a modest beat in the second quarter earnings and a positive outlook for the second half of the year, Moskow remains cautious about the company’s ability to achieve significant volume growth. The company’s strategy of incremental price investments, rather than substantial price resets, is seen as insufficient to drive the desired growth.
Additionally, while PepsiCo’s international sales showed promising growth, the overall EBIT declined, and the performance of key segments like Frito-Lay and PBNA was mixed. The planned productivity enhancements and cost reductions, including facility closures and headcount reductions, are expected to support these investments, but the lack of clarity on the restructuring details contributes to the Hold rating. Furthermore, new product reformulations and launches, although promising, are not expected to significantly alter the current growth trajectory in the near term.
According to TipRanks, Moskow is a 3-star analyst with an average return of 2.0% and a 46.27% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as Campbell Soup, Conagra Brands, and PepsiCo.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $165.00 price target.