PepsiCo price target raised to $154 from $150 at Wells Fargo

Wells Fargo raised the firm’s price target on PepsiCo (PEP) to $154 from $150 and keeps an Equal Weight rating on the shares. Last quarter, PepsiCo closed +7.5%. Sales were slightly better, but the firm thinks the debate was much more around “earnings power” implied by the Q4 exit rate. This quarter, PepsiCo closed +4.2% vs. XLP +0.3%. Organic sales actually missed, but, once again, there seems to be an elevated debate on profit power, i.e., Q4 EBIT implied positive mid-teens year-over-year, Wells adds.