Peter Galbo, an analyst from Bank of America Securities, reiterated the Hold rating on PepsiCo. The associated price target was raised to $155.00.
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Peter Galbo’s rating is based on a combination of strategic updates and financial projections for PepsiCo. The company announced plans to enhance shareholder value through initiatives like accelerating sales growth and improving operating margins. These plans include maintaining affordable pricing, focusing on innovation, and reducing costs. Despite these efforts, Galbo believes that the challenges within PepsiCo’s portfolio persist, which supports his Hold rating.
Additionally, while PepsiCo’s decision not to divest brands or refranchise its US bottlers reflects confidence in its structural integrity, the financial outlook remains cautious. The projected sales and earnings growth are expected to be offset by a higher effective tax rate. Galbo maintains a price objective of $155, which aligns with his view that PepsiCo’s current market position justifies a neutral stance.
According to TipRanks, Galbo is an analyst with an average return of -1.9% and a 45.02% success rate. Galbo covers the Consumer Defensive sector, focusing on stocks such as Tyson Foods, Coca-Cola, and Hormel Foods.