Macquarie Upgrades PepsiCo To Outperform, Prefers Over Coca-Cola

As previously reported, Macquarie analyst Caroline Levy upgraded PepsiCo (PEP) to Outperform from Neutral and raised her price target on the stock to $126 from $107, stating that new CEO Ramon Laguarta "moved decisively" to reset for sustained 4%-6% sales growth by stepping up marketing and capital spending.

Image result for pepsi logo

Levy, who said she is most encouraged by Pepsi's commitment to driving impulse purchases, said she believes the company can deliver 5% average annual sales growth over the next three years given higher investments in advertising, sales, and distribution of its brands. She also recommends overweighting PepsiCo shares versus Coca-Cola (KO), on which she keeps a Neutral rating.

Disclaimer: TheFly's news is intended for informational purposes only and does not claim to be actionable for investment decisions. Read more at  more

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.