Guggenheim analyst Laurent Grandet has raised PepsiCo Inc (NASDAQ:PEP) price target to $175 from $171 (implying an Upside of 13.92%) and keeps a Buy rating on the shares.
The analyst said the core business is accelerating as Pepsi takes share from Coca-Cola Co (NYSE:KO). He sees the divestiture of the "low-growth, low-margin" Tropicana juice business and expansion in the energy category driving growth and margin upside.
Grandet sees potential additional earnings upside this year as he expects "rationality" to continue in the U.S. carbonated category.
Price Action: PEP shares are trading higher by 0.58% at $154.5 in premarket on the last check Tuesday.
Comments