Zheng Feng Chee, an analyst from DBS, maintained the Buy rating on PepsiCo (PEP – Research Report). The associated price target remains the same with $172.00.
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Zheng Feng Chee has given his Buy rating due to a combination of factors including PepsiCo’s strategic efforts and its potential for international growth. He notes that despite a conservative growth outlook, PepsiCo’s international markets provide a significant opportunity for expansion, particularly given the lower per capita consumption of their products compared to the U.S. The company’s investment in international markets to enhance scale and affordability is expected to bolster its position.
Furthermore, Zheng Feng Chee highlights PepsiCo’s efforts to revive growth in North America through product innovation and category expansion. The introduction of new products like Muscle Milk and grain-free tortillas, along with a focus on smaller, lower-priced meal options, are seen as strategies likely to drive growth. While market skepticism remains regarding North America’s recovery, Zheng Feng Chee is optimistic about PepsiCo’s pricing strategies and its capacity to prove the market wrong, supporting his Buy rating with a revised target price of USD172.
In another report released on February 10, Pickering Energy Partners also initiated coverage with a Buy rating on the stock with a $0.00 price target.